P11D Van Benefit

[JJB121]

Hi

Please can someone help me understand how I should fill in my 2018/2019 self assessment form.

I work for a company via PAYE and receive a van for private use for which I'm taxed via PAYE from employer. My tax code changed when I opted in to use the van for private use over 18 months ago. I have a copy of the P11D form that they have submitted.

I also need to complete a self assessment tax return for property rental income, however when in input the van benefit of £3350 into the form, my tax due jumps up by £1000. This may well be correct however I don't understand why this should increase my tax bill when I have already paid extra tax via PAYE to the tune of £55 per month all year. Total income for the year is still below 40% income tax level of £46350.

Any insight would be appreciated

Thank

John

[robbob]

hmm detective hat robbob needed for this one.

I am presuming its not the obvious tax due on rental profit bit !! - you tax will obviously jump when you add the van benefit but if you have no rental profit and have correct tax code for van benefit it should jump for from refund before inclusion to nil after inclusion.

attempt one check tax deducted at source

Ok have your last 2018/19 tax code to hand

Ok i would start by looking at your p60 - has that deducted correct tax based on tax code implemented?

The maths is pretty simple

Say personal allowance 11850 less van benefit 3350 = £8500 personal allowance available

Take taxable pay per p60

say £25,000
deduct £8500 available
£16500 * 20% = £3300 tax deducted per p60

does that tax match your p60 tax and have you correctly entered the £25,000 and £3300 amounts on your tax return ?

To be continued .........