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Where Taxpayers and Advisers Meet

Disclosing undeclared Benefit in Kind

Silvery Waves
Posts:4
Joined:Wed May 27, 2020 12:25 pm
Disclosing undeclared Benefit in Kind

Postby Silvery Waves » Fri Oct 09, 2020 3:58 pm

A company has failed to declare a benefit in kind for an employee for a number of years - total underpaid tax + NI approx £2,500.

What is the best way to settle this to ensure the employee is not hit with a nasty bill from HMRC? Would a letter to HMRC outlining the situation and summarising grossed up amounts due be the best way to proceed, in which it is made clear that the company would like to settle all tax & NI due?

ETaxConsulting
Posts:3
Joined:Sun Nov 29, 2020 3:25 pm
Contact:

Re: Disclosing undeclared Benefit in Kind

Postby ETaxConsulting » Sun Nov 29, 2020 3:29 pm

A company has failed to declare a benefit in kind for an employee for a number of years - total underpaid tax + NI approx £2,500.

What is the best way to settle this to ensure the employee is not hit with a nasty bill from HMRC? Would a letter to HMRC outlining the situation and summarising grossed up amounts due be the best way to proceed, in which it is made clear that the company would like to settle all tax & NI due?
That's right. A voluntary disclosure letter outlining the position and calculating/settling the tax/NI on a grossed up basis
Tax Manager
E-Tax consulting
www.e-taxconsulting.com


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