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Where Taxpayers and Advisers Meet

P11d for year with no employment

Posts: 2
Joined: Tue Nov 05, 2019 5:22 pm

P11d for year with no employment

Postby NJSharp » Tue Nov 05, 2019 5:51 pm

Hi All,

I'm new to the forum so hello, and thanks in advance for your help!

I recently received a P11d from my former employer, for a tax year starting ~2 months after I left the company, in relation to a healthcare benefit I had while working there. I thought this was a bit odd, so looked into it, and stumbled upon the Income Tax (Earnings and Pensions) Act 2003. Reading this, section 201 (which I understand would apply to such a benefit), specifically clause (4) thereof, states that "For the purposes of this Chapter it does not matter whether the employment is held at the time when the benefit is provided so long as it is held at some point in the tax year in which the benefit is provided." Clearly this requirement of employment at some point in the respective tax year was not met, so I went back to my old employer. It turns out the benefit wasn't cancelled when I left, and they made payments on my behalf extending into the following tax year in error. However, their finance team claim to have spoken with HMRC and been told by the "HMRC benefits technical expert" that since the payment was made on my behalf and I apparently still had access to the benefit, that the liability stands.

Does anyone have any experience of this, or know what I'm missing? Is my understanding of which part of the act applies in this case incorrect, or has my former employer been mislead by the HMRC "experts"?

(Further background, I tried to check with HMRC, but the chap on the phone didn't know the rules in enough detail to answer and at one point he went to check with a supervisor who told him that once the P11d is received, they can't amend it [any amendment has to come from the employer who submitted it] and that I have to sort it out with the employer)

Any input much appriciated!

Posts: 219
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire

Re: P11d for year with no employment

Postby jerome.lane » Wed Nov 06, 2019 12:31 pm

Hi, this probably happens more often than you'd imagine! There's a good chance that the provider may not have paid out if a claim had been made when you weren't an employee.

HMRC's view appears to be that there cannot be a charge if you are not an employee unless deliberate avoidance, a loan waiver or PAYE has not been correctly operated on Directors income; see

I would suggest that a benefit charge should not apply and if the ex employer insists on applying the benefits code, then they should pick up the cost to you as its beyond your control. such a payment would be compensatory and not employment related. It's a bit of a farce!
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Posts: 2
Joined: Tue Nov 05, 2019 5:22 pm

Re: P11d for year with no employment

Postby NJSharp » Thu Nov 07, 2019 3:24 pm

Hi Jerome, Many thanks for your input.

The complication seems to be that HMRC apparently told the former employer that the benefit would still be considered provided/received and that I should be charged as such.

I have gone back to the employer and asked them to provide the explanation received from HMRC (specifically referencing the clause in the Act which they believe applies), in order to understand their thinking.

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