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Posted Thu, 06 Jun 2024 14:22:09 GMT by L.Oliveira
Hi, Please, I would to understand if the claw back of a Benefit in Kind impacts my tax code / tax allowance, per case below. In the beginning of 2023 my current employer paid for immigration support (ILR Visa and consultancy) in a total of £6500.00. This has been reported on my 2022-2023 P11D, which caused on a reduction of my tax free allowance and from August 2023 until March 2023 I have paid around £200.00 extra taxes because of this benefit in kind (around £2500.00 extra income tax paid). I found a new job with another company and per contract with my current employer, I have to pay back the immigration support (same £6500.00), hence my current employer is deducting approximately £2166.67 (after taxes) from my pays of April, May and now June. My point/question is: if you add up all payments I'm doing (£2500 in extra taxes + £6500 claw back), I'm paying £9000 for something that should have costed £6500 (because I'm having to pay back). So, should my tax free allowance increase in £6500? Should my tax code be updated? (that would mean I would pay £2500 less income tax during the next months) Thank you in advance.
Posted Mon, 10 Jun 2024 11:49:44 GMT by HMRC Admin 5 Response
Hi 

You will need to contact HMRC to access and review your record in this case.
You can contact HMRC at Income Tax: general enquiries

Thanks

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