Reporting P11D Taxable employment benefits in Self Assessment tax returns

twister_teddy

Hi all

Need to verify that my understanding on below is correct please. 

Context : I resigned from my PAYE employment 31 March 2022, a few days before the tax year 2021/22 ended. Previously I have received a P11D for previous tax years whilst I was employee throughout tax year, although no P11D was generated for 2021/22, instead the following letter was received. 

Re: Payrolled benefits for the 2021/22 tax year

Dear <omitted_employee_name>

As you may be aware, <omitted_company_name> Limited has registered with HM Revenue & Customs (HMRC) to formally payroll benefits through payroll and therefore, as you have received taxable benefits during the 2021/22 tax year (6 April 2021 to 5 April 2022), this letter is being sent to summarise your tax position.

What does this mean for you?

Instead of certain non-cash benefits being reported on your form P11D following the end of the tax year, the benefits summarized below have been processed through payroll throughout the tax year to account for the tax due.

Your benefits payrolled 2021/22

The following benefits have been processed through payroll during the 2021/22 tax year:

Private Medical Insurance: £730.53

Private Dental Insurance: £461.28

Critical illness cover: £46.26

As you have not been provided with any further reportable benefits during the tax year, you will not receive a form P11 D for the 2021/22 tax year. Please retain this letter for your records.

I am now completing self assessment tax returns for 2021/22 and is my understanding correct that I don't need to report above Taxable employment benefits in the HMRC self assessment section below, and these have already been reported and taxed as above letter suggests. 

Employment benefits and expenses
The information to help you complete the next question can be found on your P11D or equivalent from your employer.

Dazed_and_C0nfused

Doesn't the taxable pay value from your P45 factor in these taxable benefits?

[Deleted User]

twister_teddy said:

Hi all

Need to verify that my understanding on below is correct please. 

Context : I resigned from my PAYE employment 31 March 2022, a few days before the tax year 2021/22 ended. Previously I have received a P11D for previous tax years whilst I was employee throughout tax year, although no P11D was generated for 2021/22, instead the following letter was received. 

Re: Payrolled benefits for the 2021/22 tax year

Dear <omitted_employee_name>

As you may be aware, <omitted_company_name> Limited has registered with HM Revenue & Customs (HMRC) to formally payroll benefits through payroll and therefore, as you have received taxable benefits during the 2021/22 tax year (6 April 2021 to 5 April 2022), this letter is being sent to summarise your tax position.

What does this mean for you?

Instead of certain non-cash benefits being reported on your form P11D following the end of the tax year, the benefits summarized below have been processed through payroll throughout the tax year to account for the tax due.

Your benefits payrolled 2021/22

The following benefits have been processed through payroll during the 2021/22 tax year:

Private Medical Insurance: £730.53

Private Dental Insurance: £461.28

Critical illness cover: £46.26

As you have not been provided with any further reportable benefits during the tax year, you will not receive a form P11 D for the 2021/22 tax year. Please retain this letter for your records.

I am now completing self assessment tax returns for 2021/22 and is my understanding correct that I don't need to report above Taxable employment benefits in the HMRC self assessment section below, and these have already been reported and taxed as above letter suggests. 

Employment benefits and expenses
The information to help you complete the next question can be found on your P11D or equivalent from your employer.

You don’t report them as the tax due thereon has been paid through PAYE.

twister_teddy

Dazed_and_C0nfused said:

Doesn't the taxable pay value from your P45 factor in these taxable benefits?

Yes it does, there are two sections on the payslip (Gross pay and Taxable Pay). 

I have just added them manually and I can confirm that on last payslip the 

YTD Gross pay + taxable benefits above = YTD Taxable Pay

The P45 (and HMRC) mentions final Taxable Pay so yes I can see that HMRC has taxed it already, thanks for confirming.

twister_teddy

Do I still need to say "Yes" to the question below in SA. Technically speaking I have received the taxable benefits but since the tax has been deducted through payroll. 

Have you received any taxable benefits and expense payments from <Employer> LTD ?

Yes

No

And If I select "Yes" it then opens a new page "Employment benefits and expenses" requesting figures for taxable benefits. I have inserted zero for every benefit there. 

[Deleted User]

The question is badly worded and should state ‘which are not payrolled’. It is hard to argue with what you have done. 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1062531/SA102-Notes-2022.pdf