Benefits in Kind

Benefits in kind are received by a great number of employees and directors, particularly those with company cars. The income tax implications of these benefits can be complicated. So taxpayers need to understand the rules so that they can properly  prepare their self assessment tax returns and make decisions about their future remuneration package.

Specific areas which we are typically asked to advise on include:

• Understanding the mechanics of company car tax benefit in kind rules,
  • HMRC car and fuel benefit calculator
• Minimising the tax on company cars,
• Receiving non taxable benefits in kind,
• PAYE coding implications of these benefits, including coding out underpayments,
• Preparing forms P11d and calculating the resultant Class 1a NIC liability.

Agreeing the taxation on your benefits in kind with HM Revenue & Customs is principally achieved by completing the employment supplementary pages of a self assessment tax return. This must be done in accordance with the form P11d issued by your employer. Clients who are fearful that these benefits may be investigated by HM Revenue & Customs may wish to consider taking out our tax investigation insurance.

Understanding this complicated tax system and paying the correct amount of tax, at the correct time, through the correct mechanism, is what most clients seek. Speak to our tax technicians and put your mind at ease. We may even be able to suggest ways to restructure your remuneration package and save tax.