Mat
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P11D for employee who left in the tax year before last
Hello, An employee was receiving a BIK (private medical insurance). When they left the company in September 2022, the benefit was not cancelled (this was done in error) and this was only rectified on 9th May 2023. We already submitted P11D for the employee for 2022/23, however, because the employee has not been employed by us during the 2023/24 tax year, we are unable to submit the P11D form via our payroll provider. Can you please advise how we can submit the information for the period of BIK from 6th April to 9th May 2023 for the mentioned employee? Many thanks, Mat -
RE: P11D - benefit kept active in error after employee left
Hi, Thank you, this is now understood. Can you please elaborate how an employer can pay former employee part of the tax on benefit they were receiving in error - either through grossing up or by PSA? Thank you. -
RE: P11D - benefit kept active in error after employee left
Hi, The issue is that the person was not longer an employee, but the benefit was still active. So, what you are saying is that, if a company doesn't end the taxable benefit and it stays open for years after the employee has left, an ex-employee would be liable to pay tax on that each year? Surely this is not right. It's not the employee's fault that the benefit was left active after their termination of employment. -
RE: P11D - benefit kept active in error after employee left
Thank you for your reply. Wouldn't that mean that the former employee will be liable to pay tax on the whole amount? Despite not being employed for part of the period when the benefit was active. The error was made by the employer, so employee should not bear the cost for this error? -
P11D - benefit kept active in error after employee left
Hello, One of our employees left the business last year, however, their taxable benefit (health insurance) was kept active in error. How do we report this on their P11D? Do we pro rate the overall value/cost only for the time when they were employed? Many thanks!