Benefits in kind

[Jack1960]

Since the new tax year started my Tax Code has been lowered each week and is now 770L.
I got a p800 letter from HRMC yesterday stating that i wasnt paying enough tax on Benefits in Kind. This has accumulated each year and now my code has been adjusted till i pay it back .
Does anybody know what Benefits are Kind are ?
I did buy some stuff from My Bundle so maybe thats It?

[enskied]

I would imagine it is stuff from your bundle.
BENEFITS IN KIND (BIK)
are for things provided from your employ either for free or at greatly reduced costs.

[Jack1960]

I would imagine it is stuff from your bundle.
BENEFITS IN KIND (BIK)
are for things provided from your employ either for free or at greatly reduced costs.

Thanks for quick reply, i have just checked and found that Terry Pullinger sent put an LTB last year explaning what would happen. The examples he gave are spot on.

[jobandfinishnomore]

Do you possibly use a Royal Mail van to commute daily between your D.O. and home address .This could be construed by HMRC as a benefit in kind with an appropriate change in your tax code but the tax man wouldnt act unless informed by Payroll or HR , just guessing though.

[loyalsnail]

I would imagine it is stuff from your bundle.
BENEFITS IN KIND (BIK)
are for things provided from your employ either for free or at greatly reduced costs.

Thanks for quick reply, i have just checked and found that Terry Pullinger sent put an LTB last year explaning what would happen. The examples he gave are spot on.

If you took out the Benefit in Kind after 6th April 2022 then this should NOT be reflected in your tax code... Your code should only be lowered for any money owed against benefit in kind prior to that date

[Jack1960]

Thank you for replies , if i take one year for example , 2018/2019.
Income 37879 tax5158
Pension 5189. tax 1040
BIK 1552. tax 0
Total tax paid 6200
Total tax due. 6546
There is a discrepency of 346 pounds or so due to BIK classed as income .
The BIK were ipads for my grandkids about 29 a week.
Does that make sense !?

[loyalsnail]

Yes, makes sense

Untaxed BiK of £1,552 x 20% tax = £310.40 tax owed

I would however question why HMRC are only trying to collect this now, in 2023/24... They've had three previous years in which to collect the tax but instead have waited for a cost of living crisis before deciding to contact you about it...

[Jack1960]

Yes, makes sense

Untaxed BiK of £1,552 x 20% tax = £310.40 tax owed

I would however question why HMRC are only trying to collect this now, in 2023/24... They've had three previous years in which to collect the tax but instead have waited for a cost of living crisis before deciding to contact you about it...

Thanks for reply.
Thing is its for 4 years as well, plus last year my pension nra 65 pushed me over tax bracket,
They have now estimated my income this tax year to be 54000 for this year despite being more like 35 to 40 as i will be retiring this year.
There is, however, the option to adjust the amount online but may just leave It and get a refund after i go .