This is not work related but to do with my ATT studies.
The section I am on at the moment deals with Employment Benefits as in Car, Loan, Accommodation and such like, I have no problems doing the calculations in arriving at the total benefits but what is not shown in the course book (so hopefully not in the exam) is how the taxable benefits are collected, it touches briefly on reporting the information to HMRC using form P11D but no mention of what happens next.
What I am trying to ask is, if for example I had taxable employment benefits for the year 2016/17 would I get like the self-employed a tax bill through that needed paying by a certain date or would it be taken through the PAYE system and if so when would these payments be taken ?
If anyone could enlighten me on this it would be much appreciated
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
You would need to file a P11D no later than 6th July following the tax year., although since 2016 you can opt to tax the benefit on the payroll, providing HMRC are advised before the start of the tax year. If P11D then HMRC recode the personal allowance to collect the tax back over the tax year.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
So for the tax year 2016/17 the P11D would need to be filed by 6th July 2017, would the tax be collected starting from then or would it start from the beginning of the new tax year.
Sorry for all the questions, I just hate learning something without getting all the information.
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
So for the tax year 2016/17 the P11D would need to be filed by 6th July 2017, would the tax be collected starting from then or would it start from the beginning of the new tax year.
Sorry for all the questions, I just hate learning something without getting all the information.
Cheers
Hi Doug
HMRC usually do an in year tax code once they receive the P11D so the employee would start repaying the tax before the 5 April 2018. Sometimes though repayments make go on over a couple of tax years, although I think this is quite rare and more often than not a result of some error/failure to pick up on the issue (under the old paper based regime this happened when P11Ds got lost in the post between company and HMRC for example).
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Just read back my reply and hope you didn't think that when I wrote "I just hate learning something without getting all the information" that I meant from you I was talking about my ATT study book.
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
