tax return, P11D and benefits

rkaura

Hi,

My Pax Code for 2007-008 is 385L which is worked out by taking my personal allowance and subtracting expeenses for medical/dental/personal accident insurance. This reduces my tax-free allowance to £3850. Does this mean that tax deductions due on these benefits have been factored into my tax-code and thus the figures from my P11D do not need to be entered into my tax-return (i.e. Box 2.4 on the Short Tax Return 2007)?

Regards,

Ricky.

Disclaimer: Tax is not my forte, so forgive the ignorance.

fengirl_2

The deduction in your 2007-08 PAYE code is for bebefits in kind receivable this year. The return is for the year 2006-07 so you need to enter the benefits in kind for that year on that form. When you come to fill in your 2007-08 form you will include the P11d figures for that year from the P11d you will receive after April 2008.
If you did not complete the tax return fully you would not only be liable to a penalty, but you would be taking the benefits in kind away from your taxable income for the year.

Debt_Free_Chick

rkaura wrote: »

Hi,

My Pax Code for 2007-008 is 385L which is worked out by taking my personal allowance and subtracting expeenses for medical/dental/personal accident insurance. This reduces my tax-free allowance to £3850. Does this mean that tax deductions due on these benefits have been factored into my tax-code and thus the figures from my P11D do not need to be entered into my tax-return (i.e. Box 2.4 on the Short Tax Return 2007)?

Regards,

Ricky.

Disclaimer: Tax is not my forte, so forgive the ignorance.

Just to add to Fengirl's response ....

The adjustment to your tax code is an estimate. You still need to declare the actual amounts of the benefits you received via your tax return. If the adjustment made to your tax code for that year is more or less than the actual tax due, the refund/balance will then be reflected in a further adjustment to this year's tax code.

Essentially ... you are playing "catch up". HMRC collect some tax for your benefits via your tax code. Once you submit your tax return, they then balance it out.

HTH