Romo10 Romanowski
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RE: BIK calculation
Hi mwebc24, I am experiencing a similar, what appears to be double counting experience. My BIK has rightly been added to my earnings total and throughout the tax year my personal allowance (and tax code) was amended accordingly. Therefore I have paid tax all year on the BIK. Then at the end of the tax year when calculating total earnings they add the BIK to your total earnings, but only minus your personal allowance at the reduced rate (even though you have been paying tax on it all year), rather than the full rate. Therefore it does appear to be a double counting as your "full" personal allowance should be part of the calculation. (As you have paid tax all year on BIK). I have asked for the written formula on the justification and am awaiting an update. Thank you