P11D Query

Jeremy535897

Sparta1983 said:

Jeremy535897 said:

Sparta1983 said:

Dazed_and_C0nfused said:

Sparta1983 said:

Thanks for the reply dazed. This is what has confused me because my tax code for the 2019/20 tax year is is 106L(which i believe means my personal allowance is 1006 for that tax year, so surely they have already taken this is to account?

No, you are getting two totally different things mixed up.

Your tax code allowances (the 1060-1069) are made up of your Personal Allowance plus any adjustments needed and less any deductions such as company benefits.

106L could be (reduced) Personal Allowance of 1065.

But the 106L could also be Personal Allowance £12,500 less company benefits £11,435 = tax code allowances of 1065

So assuming my 106L tax code is saying that i have a personal allowance of 1065 does this not mean they have taken my company benefits into account throughout the year and hence i shouldnt be getting hit with a massive tax bill through my self assessment at the end of the year? 
apologies' if am going round in circles just trying to get my head round it

Jeremy it looks like my self assessment says i have no personal allowance as on the summary everything is taxed at either 20% or 40%

Thanks again for your replies

As has been said above, it looks as if your code of 106L was £12,500 personal allowance less £11,435 benefits, but if your income including benefits exceeded £125,000, that should have been £0 personal allowance, meaning you owe tax at 40% on £12,500. Is the underpayment £5,000? (If your income including benefits was somewhere between £100,000 and £125,000, you will owe less.)

Hi Jeremy, yes the under payment is around 5k. I assumed that the personal allowance that i lost due to my earnings over 100k would be taxed at 20% not 40% so that would explain a lot. Just to clarify is that the case?

Yes, as previous poster explains.