Self assessment and BIK

[Adam.]

Quick question from one of my employees and google didn’t help, HMRC site useless.

I have been SA for 20+ years now (from memory it kicked in when I had a company car and fuel) but a work colleague is asking me if she needs to as she never has before.

Does she need to complete SA? She thinks not as she makes less than the £100k threshold however she gets private health which has a BIK value and our payroll company don’t account for it.

So I am assuming she must have to SA

[Sheepshanks]

The BIK will be reported to HMRC on her P11D.

[Adam.]

Aha was thinking the P11D was something payroll just sent to us, if registered with HMRC I guess they include and adjust tax code accordingly

Thanks

[Jockman]

As long as her income is PAYE and not from Dividends then she will be fine.

Unless of course she wants to voluntarily SA.

[Eric Mc]

In theory, the PAYE system should correctly tax the BIK. HOWEVER, it doesn't always. One way to check whether you are being taxed correctly on a BIK is to voluntarily complete an SA return.

[Collectingbrass]

How are her pension contributions taken and does that method account for her being a 40% tax payer? She may need to do SA anyway because of this.

[Adam.]

Collectingbrass said:

How are her pension contributions taken and does that method account for her being a 40% tax payer? She may need to do SA anyway because of this.

Via NEST