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Disclosing undeclared Benefit in Kind

Company wants to settle liability in full

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A company has failed to declared a benefit in kind for an employee for a number of years - total underpaid tax + NI approx £2,500.

What is the best way to settle this to ensure the employee is not hit with a nasty bill from HMRC? Would a letter to HMRC outlining the situation and summarising grossed up amounts due be the best way to proceed, in which it is made clear that the company would like to settle all tax & NI due?

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By Anonymous.
09th Oct 2020 17:15

Not sure.

This might be worth a read:

https://www.rossmartin.co.uk/index.php/penalties-a-compliance/363-p11ds-...

Why was the benefit not declared and are you and the directors sure that there is nothing else lurking?

You need to make sure the client is aware of worst case penalties and interest.

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Replying to Anonymous.:
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By Silvery Waves
09th Oct 2020 17:50

Property owned personally by director was provided FOC to an employee. Gas & elec bills were being paid by the director and the in-house bookkeeper was unaware of all of this when preparing P11Ds.

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By RaxJ
09th Oct 2020 17:39

Well how has that all been missed?

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Replying to RaxJ:
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By Silvery Waves
09th Oct 2020 17:51

Per above - miscommunication. Benefit provided by director that therefore didn't show up in company accounts.

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