Tax Question re "Benefits in Kind"

marcrp

Hi,

Last year I signed up my companys BUPA medical insurance in September. The scheme runs from April to March but I joined half way through. It cost around £325 (so 22% tax to pay on this) to my employer.

My question is this. As this is a taxable benefit how will the HMRC take the tax for my benefit last year and also this tax year as well?

I know my company is filling out a P11D to tell the HMRC that I received this benefit. However when I get a copy of this do I have to do anymore? Do I just get a revised tax code for this tax year that will take into account the tax I need to pay for last year and also this year? Or do I have to do a tax return to pay the tax?

Many thanks,

Marc

fengirl_2

The tax due for 2007/08 is about £71 so HMRC will probably ignore this (normally liabilities of less than £100 in a year for people not on SA are ignored).
For 2008/09, a restriction will be put in your code number to collect the tax due. However, it might be months until they get round to looking at the P11d's for your company, so don't hold your breath!

stratty

You can always give the tax office a call and tell them that you receive the benefit.

They will change your tax code and then notify your employer to ensure you are paying the correct amount of tax and do not accrue a liability.