We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Health insurance and HMRC
Hi,
I have medical insurance at work. this new tax year HMRC said I owe them £174 because of last year wasn't deducted from my salary, tax code didn't change;'. Who is to blame here? I don't know if my employer didn't inform HMRC about my health insurance or maybe HMRC overlooked it ?
Comments
-
Would it make a difference if you knew ? No, the tax will still be due.
1 -
It is your responsibility to ensure you pay the correct tax.
Did you notify HMRC that you were in receipt of health insurance from your employer?0 -
Why is anyone to blame?
If it was the first tax year you received this benefit, or there was a large increase in the value of the benefit, it is quite normal to have some unpaid tax.
If you don't like having what is effectively an interest free loan from HMRC then the way to avoid it is to take more control of your own tax affairs and enzure your tax code is always as accurate as it can possibly be.
0 -
no, because I thought that was payroll's role
0 -
Payroll will notify HMRC of the benefit when they send you the P11D advising you on the amount of the benefit for the year.
This is after the end of the tax year.
HMRC will have acted to calculate your tax liability on receipt of that information.
You can check in your personal tax account that HMRC have up to date information about your tax affairs.
1 -
It is, but only after the end of the tax year to which it applies. This has worked to your advantage - you have received a taxable benefit for which you have not yet paid any tax. HMRC will now presumably charge you for this via a reduction in your PAYE tax code which will apply for the following 12 months. In effect you are getting a year's interest free loan of the taxable amount.
If you really want to pay tax the instant it is due then you could voluntarily inform HMRC of the taxable benefits you are receiving during the tax year in which they apply.
1 -
Check your payslips and P11D if you received one comparing to the previous year.
0 -
I've never seen a P11D form, the previous year was fine as my tax code was lower, only the tax year 24/25 went back to 1257L
1 -
You should receive a P11D along with your P60 for any tax years that you receive taxable benefits. Was 25/26 the first year of receiving this benefit?
1 -
no, I started the previous year the health benefit and I was taxed correctly , I don't know why last tax year was wrong
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.7K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.6K Work, Benefits & Business
- 604.5K Mortgages, Homes & Bills
- 178.6K Life & Family
- 262.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards