Tax Return - Daft Laddie Question
Discussion
I had to do a tax return for the first time this year.
I'm PAYE but get health cover from my company.
This is listed in my P11D - gross amount over the year is approx £1500 and there is a field within my form that states "Made Good" of £1500. Now I entered the full £1500 as a taxable benefit in my tax return and I've a horrible feeling I've made an error!
Would just like someone to clarify this for me please. If Gross Amount == Made Good Amout do I have anything to declare from a tax perspective?
If I've cocked up I assume I can recall my tax return and edit?
Thanks for patience!!
I'm PAYE but get health cover from my company.
This is listed in my P11D - gross amount over the year is approx £1500 and there is a field within my form that states "Made Good" of £1500. Now I entered the full £1500 as a taxable benefit in my tax return and I've a horrible feeling I've made an error!
Would just like someone to clarify this for me please. If Gross Amount == Made Good Amout do I have anything to declare from a tax perspective?
If I've cocked up I assume I can recall my tax return and edit?
Thanks for patience!!
No it doesn't. The Benefit In Kind is usually returned as a matter of course through the PAYE system whether any of it is "made good" by the employee or not. If the benefit IS made good by the employee, the value of the benefit as taxed through the PAYE system should take the "making good" into account.
The main issue with Benefits in Kind is that the figure that is used for PAYE purposes by HMRC io usually the value from the previous tax year. The value that should be entered on the tax return is the value that is correct for the tax year in question. That usually indicates to HMRC that they were using a value that was a year out of the date and any difference in the tax liability is sorted through self assessment.
It's a rather messy system and one of the reasons why HMRC plan to abolish Self Assessment.
The main issue with Benefits in Kind is that the figure that is used for PAYE purposes by HMRC io usually the value from the previous tax year. The value that should be entered on the tax return is the value that is correct for the tax year in question. That usually indicates to HMRC that they were using a value that was a year out of the date and any difference in the tax liability is sorted through self assessment.
It's a rather messy system and one of the reasons why HMRC plan to abolish Self Assessment.
Thanks all for advice.
Admittedly I completed in a rush yesterday and assumed as I was PAYE then P60 and P11D figures plugged into the right boxes would be fine.
Having had more time this morning and read the tax return form properly (slap on wrist) and your helpful responses I realised that I'd put the wrong figure in for my med insurance taxable benefit. So all good now and resubmitted.
Have to say (although it's a pain) the online self assessment site is very nicely put together.
Admittedly I completed in a rush yesterday and assumed as I was PAYE then P60 and P11D figures plugged into the right boxes would be fine.
Having had more time this morning and read the tax return form properly (slap on wrist) and your helpful responses I realised that I'd put the wrong figure in for my med insurance taxable benefit. So all good now and resubmitted.
Have to say (although it's a pain) the online self assessment site is very nicely put together.
Breeks said:
Thanks all for advice.
Admittedly I completed in a rush yesterday and assumed as I was PAYE then P60 and P11D figures plugged into the right boxes would be fine.
Having had more time this morning and read the tax return form properly (slap on wrist) and your helpful responses I realised that I'd put the wrong figure in for my med insurance taxable benefit. So all good now and resubmitted.
Have to say (although it's a pain) the online self assessment site is very nicely put together.
Pity it will all be shut down in a few years.Admittedly I completed in a rush yesterday and assumed as I was PAYE then P60 and P11D figures plugged into the right boxes would be fine.
Having had more time this morning and read the tax return form properly (slap on wrist) and your helpful responses I realised that I'd put the wrong figure in for my med insurance taxable benefit. So all good now and resubmitted.
Have to say (although it's a pain) the online self assessment site is very nicely put together.
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