Tax return question

[andy355]

Having seen some helpful answers here on other threads I thought I would ask for some help

P11d section i - medical insurance

If my p11d says "Cost to me" of say £1000 and "Amount made good or tax deducted" of the same amount then does that mean tax has already been paid? ( I think it has)

If so does it need to be input into the online tax return?

Thanks ever so much

[Eric Mc]

"Cost Made Good" relates to when an employee pays back an element of the Benefit they have received from the employer. An example would be -

Employer pays a Medical Insurance premium of £1,000 on behalf of the employee
Employee pays back £400 to the employer

The employee will be taxed on the £600 element of the premium paid by the employer.

In theory, you should insert on your Self Assessment tax return, the figures quoted on the P11D (unless you know for sure that the employer has made a mistake on the P11D).

If the P11D says the medical insurance was £1,000 and there are no "made good" amounts paid by you, you enter £1,000 on your Self Assessment return.

You are correct that you will already have been taxed on the P11D under the PAYE system - but you still need to make the entry on the Self Assessment.

[andy355]

Thanks Eric for your reply

In my case the cost made good is the same as the cost so netting to zero

So in that case I don't enter anything on the tax return?

[Eric Mc]

Is the P11D wrong?

[andy355]

It's not wrong but the net amount is zero

Insurance of 1k and cost made good of -1k so the last box is zero

So I am wondering if I have to enter anything at all or just ignore

[Eric Mc]

andy355 said:

It's not wrong but the net amount is zero

Insurance of 1k and cost made good of -1k so the last box is zero

So I am wondering if I have to enter anything at all or just ignore

You should repeat the data as it is shown on the P11D.