Taxable Benefit

In my P11D for 2023/2024 I will have a "taxable benefit" of £20,619 My employer has told me that they will advise HMRC about the P11D so that I will need to declare this in my self assessment. I am confused a bit on what is going to happen with HMRC and how will they take the tax I own from this benefit. - Will they change the Tax code in my current year 2024/2025? If so, do I need to include this benefit in my self assessment for 2023/2024? What is best to do here in order to avoid double taxation (from self assessment and from current tax code). Thanks for any help

Hi

You would need to declare the 2023/24 P11d on your Self Assessment tax return.
The taxable benefit decalred will then be used as an estiamte going forward in your 2024/25 tax code.
If the benefit details have changed then once the code has been amended you can contact HMRC to review Income Tax: general enquiries

Thank you

Ok so once I declare it on my Self Assessment tax return, wouldn't I be charged for it right after? Or would it be a way to opt for paying the tax with a new code in 2024/25? If given the choice, I would rather pay right away what I own and not change my tax code. Is that possible?

Hi,

When you submit your Self Assessment for 2023 to 2024 any balancing payment will be due by 31 January 2025.
If the balance due is less than £3,000 and you Self Assessment is submitted by 30 December 2024 we can review to see if the balance can be collected in your 2025 to 2026 tax code.  

Thank you.

Thanks for the answer. I guess what I would really like to do is to pay through my self assessment which I plan to do before December 2024 what I own. I would prefer no change in the tax code, just do a direct debit to HMRC with whatever I own. The benefit I got is £20,619 and my total income has been 90,560.01 (P60). Tax code was 1257L. Based on the records I have paid 23,652.00 of income tax and 4,727.43 of NI. Is it right that the BIK will be added to the total gross pay = 90,560.01 + £20,619 = 111,179.01 Based on the calculation, the income tax to pay should be £34,139.41 The difference then to pay would be £10,487.41 Is that right? Can I pay this directly in the Self Assessment?

Hi Ruth,
That appears correct, though the exact figure due can depend on anything else declared in your return - this should be confirmed when you file your return and generate your calculation. When the exact figure due is calculated, there are a number of ways you can pay, including direct debit - you can read more here:
Pay your Self Assessment tax bill
Thank you.