Dear Forum, HMRC Admin 10 has very helpfully responded to a question on treatment of an employee who receives a benefit after they have left employment. Kindly guide me to the practice note guidance on this please. I feel I will need to quote it to the employee when the P11D is issued.
Thank you very much.
Where an employee has received a taxable benefit during a tax year, then leaves during that year, and the benfit is withdrawn: a P11D should be submitted, apportioning the benefit cash equivalent to the actual time it ws provided.
Where an an employee has received a taxable benefit during a tax year, then leaves, but continues to recieve the benefit after they have left: a P11D should still be submitted as above, however, the employer should also write to the address below, advising that they are still providing the benefit. They include the former employees details, the benefit being provided and for how long after the employee has left that they will continue to provide the benefit.
Pay As You Earn and Self Assessment
HM Revenue and Customs