A client has received a P11D from a former employer. She did not work for that employer during 2015-16 but received private medical cover. It is her ex-husband's company and he seems happy to still pay the bill.
I do not believe that she should have received the P11D. However I also do not believe the amount should be taxed on the ex since they are not related parties. Even if she was an employee this is not a taxable benefit unless earning >£8,500 or a Director.
I do not want to kick up a stink and find he then withdraws the insurance or it causes a rift between the exes. The P11D benefit falls within her personal allowance.
So should I just use the figure even though I do not agree with the treatment (having raised this with my client first)?
Replies (6)
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Surely it's not your decision.
You must put your views to the client and ask her what action she wishes you to take.
The P11D is not binding on the recipient. She can complete her tax return (if she has one to complete) and just not use the figure. Why does it matter if the amount is not taxable anyway? Does she need to complete a tax return even?
Taxation article about this very subject: http://www.taxation.co.uk/taxation/Articles/2011/04/13/274551/question-b...