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Where Taxpayers and Advisers Meet

Payrolling benefits

tha1_n
Posts: 12
Joined: Thu Dec 02, 2010 6:11 pm

Payrolling benefits

Postby tha1_n » Wed May 20, 2020 2:36 pm

I always undertood the CY PAYE code collects tax on the PY benefit because P11D benefits of the PY is submitted in the CY i.e. 2019/20 P11Ds are submitted in the 2020/21 tax year.

So when we payroll benefits is there not double tax being the PY benefit (collected through the PAYE Code) plus CY benefit (collected in real time)???

robbob
Posts: 2961
Joined: Wed Aug 06, 2008 4:01 pm

Re: Payrolling benefits

Postby robbob » Wed May 20, 2020 3:34 pm

I always undertood the CY PAYE code collects tax on the PY benefit because P11D benefits of the PY is submitted in the CY i.e. 2019/20 P11Ds are submitted in the 2020/21 tax year.
This is not the case no - however often the p11d benefit isn't coded out during the year , so you have the headache of owing the money the following year when at the same there is a tax code change to code out current year expected benefits.

In theory you could have the whammy of paying for both at once but that would always be adjustment reference benefit amount would alwyas be with regard to the cyurrent years beenfit amount. If you owed tax reference the previous years benefit that would be shown as adjustment to collect tax owed for an earlier year.

Hopefully that makes sense.

Note whatever is in your code may be completley wrong anyway so any difference between benefit per p11d and what was in your code will need to be addressed too after p11d has been issued - in the above example that would be quantifying unpaid tax for that year if there was nowt in your tax code in that regard.

tha1_n
Posts: 12
Joined: Thu Dec 02, 2010 6:11 pm

Re: Payrolling benefits

Postby tha1_n » Wed May 20, 2020 4:41 pm

Cheers


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