A colleague had P11D accommodation benefits in 11/12 that were reported to HMRC. They have adjusted his tax code to a K code to claim the tax on that BiK during the 12/13 tax year. However he is submitting SA and his accountant has included this on his SA return. So I would think that will calculate the tax to pay on the BiK and potentially he will pay the same tax by this method too.
Is it best (and enough) that his accountant not include the BiK on the tax return and note it as such in the SA return notes. Or should it be included, paid and noted as a double payment to be reimbursed?
Then the complication. The tax on the BiK was subsequently agreed to be paid by the employer which has been done through payroll after the 11/12 P11D had been submitted, so the K code deductions will zero out by Mar-13. Whose responsibility is it to inform HMRC that there is no tax liability - employer or employee?
What is the best solution for the employee? To remove the K code so the SA return tax payment is net against the employers payroll adjustment? Will HMRC make a code change before year end? If not there will be a cashflow shortfall to the employee all the way through 13/14 year!
Confused in Tunbridge Wells