OK, maybe not so straightfoward P11D question after all!
I posted a question earlier in the week regarding a client that was payrolling their BUPA benefit to their employees. It appeared to be straightforward. the company was paying for BUPA and the employees were having the cost of the BUPA healthcare deducted from their payslips. Easy peasy. Enter amount of healthcare for employee on P11D and enter the same amount in the 'Amount Made Good' box.
The stroppy admin assistant that administers the payroll has waited until the day before the filing deadline to inform me (in an entirely irritating manner) that the employee taking up the BUPA is given a BUPA allowance in their Pay. So the amount of the BUPA benefit is added to their gross salary and shown as a separate line on the payslips. Tax and NICs is deducted. Then the BUPA deduction is taken out of the net pay.
The BUPA allowance is being added to the gross salary and having tax deducted but not NICs. This is why she is saying that it is a benefit.
I don't understand, surely if they are increasing the salary by £x to cover the bupa allowance this should be taxed and NICd in the same way as if they were to provide a salary increase. This would be mean the employee is out of pocket as the same amount is being deducted from the gross salary.
I am confused!
Thanks in advance for any help or advice!
- payroll software 380 4
- 1 investor and 1 director 50% shareholding each advice please 97 5
- client threatening legal action 2,105 30
- Recomendations for a purchase order management book please? 135 2
- Finding a Company UTR for a newly formed company 148 1
- Instant CPD offer 292 4
- Cash basis 526 13
- Income from rent charged to business 150 2
- CIMA accountant wants to start consultancy 452 5
- Statutory sick pay 319 4
- Dividend in specie 373 9
- Complicated Company car purchase 227 2
- Ltd Company Buying Own Shares and Transferring Assets 183 3
- Retail vat schemes for a restaurant 149 1
- Rental Property W&T And Equipment 278 1
- Legislation access for part-time sole practitioner? 299 1
- Ownership of land - declaration of trust 179 3
- Fee base v staff ratio 416 6
- NIC thresholds - two employments 1,863 27
- Statutory Accounts - Dividends Disclosure Note 340 3
- Skandia using wrong address 584
- FHL, period of grace and Entrepreneur's relief 311
- Does anyone use PS Financials accounting software out there? 310
- Employee rewards 291
- Gift of reversion and lease into trust by two different people - later PPR 261
- EPS Analysis - Change to EURO 232
- Etax Australian 191
- LLP in Construction Industry 158
- Interest and late payment charges HMRC 135
- Selling On Amazon & Calculatign Prices/Vat 135