I have a P11D for Year 2015-2016 which altered my tax code for the most recent tax year 2016-2017 from 1100L to 1000L.
Because my pay broke the £50,000 barrier and I receive child benefit, I now need to fill in a self assessment as I am due to pay back some of that benefit.
I have found that the Self Assessment automatically gives me a tax code of 1100L instead of 1000L which I was given in my Pay Slips. Because of this, the Calculation tells HMRC that they owe me money. In actual fact I need to pay tax on the Medical benefit I received in 2015-2016 which would have been at 40% tax.
If I fill this in the medical benefits section in 2016-2017, it automatically adds it to my income, meaning I have to pay the tax on the medical benefit, plus the extra cost of over paid child benefit. However this isn't correct. The only other option is to add it to previous years underpaid tax, but then I have to work out this calculation myself.
The question is: What is the right way to do this?
As a working example. Some figures are:
2015-2016 Gross Pay £44,000, Child Benefit £300 2015-2016 P11D £1000 Taxable Medical Benefit No Self Assessment needed
2016-2017 Gross Pay £51,500, Child Benefit £1076 2016-2017 No P11D as no taxable benefit received. Self Assessment needed.
Hi Dominic
Sorry but we cannot help you on here. You need to either employ the services on an Accountant or ring HMRC and see if you translate whatever they say into sensible information
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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
