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P11D in Tax code?

How to use P11D figures on tax return when in tax code

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I have a client who has a company car which is accounted in their tax code. I will use example figures to illustrate the issue.

They have a car benefit of £3,215 but the tax code has been reduced to 643L. This would lead me to suspect that the tax code has been reduced too much.

My approach was going to be to ask if they have their conformation of tax code for the year to check that this is dealt with correctly. Secondly, how should I deal with this on the return? If the tax is collected through the tax code do I ignore the P11D benefit on the return or do I still need to entre the benefit?

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By Paul Crowley
17th Jan 2021 17:23


Clearly for an accountant

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By jcace
17th Jan 2021 17:32

On the tax return you enter pay, benefits and tax paid. The only significant entry from the tax code for the tax return will be any tax collected through the code -that will need to be included in the tax return too.

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By LukeS
17th Jan 2021 18:29

I believe you mistyped your first sentence. It should have read "I am trying to complete my own tax return"

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By Truthsayer
17th Jan 2021 18:31

I'm concerned you need to ask something as basic as this. Are you sure you're qualified to do SATR's?

EDIT: I think LukeS above has hit the nail on the head.

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By SXGuy
17th Jan 2021 18:49

No mention of the p11d figures either... Maybe we're all clairvoyant now too

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By Paul D Utherone
17th Jan 2021 20:02

Enter details from the P11D in the tax return.

What is in the tax code is neither here nor there, being HMRC's best estimate based on the previous years P11D.

If the client is on your agent list, then you might be able to view tax codes for the year to reconcile how a repayment, or underpayment may have arisen. But again the tax code entries have nothing to do with what goes on the tax return

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Replying to Paul D Utherone:
blue sheep
18th Jan 2021 07:00

not strictly true, the tax code might include underpayments from a previous year which will need to be included on the SATR to establish the correct liability.
Either way if you are acting for a client you should know all this

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Replying to NH:
By Paul D Utherone
18th Jan 2021 11:01

Agreed. I was just addressing the BiK / P11d query, but perhaps didn't make clear.

Of course one would hope that an agent acting for a client might recognise that fairly basic point re PAYE, BiK & tax codes

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By Matrix
18th Jan 2021 07:31

You need to take a step back here. If you omit the P11D figures then the tax already collected through the tax code would show as overpaid. HMRC would then have to revise the return to include the benefits. Client probably not happy since you told him there is a repayment.

I agree with some of the above, I don’t think you should be charging clients to complete tax returns. It is the unknown unknowns which could catch you out.

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By SteveHa
18th Jan 2021 09:20

To paraphrase, if this is indeed for a client, what are you doing with a client?

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By the_drookit_dug
18th Jan 2021 12:00

Tax codes aren't necessarily correct anyway. HMRC make assumptions in an effort to more accurately estimate the amount of tax employees will be due to pay in a given year, but just because a benefit was received in one year does not mean the same benefit will be received the following year.

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Replying to the_drookit_dug:
By SteveHa
18th Jan 2021 12:39

I don't think anyone would dispute that. However, anyone claiming to be an accountant and acting for clients should not be asking the question asked in the OP.

If they have to ask, then they should not be acting for clients.

It's Tax 101, for crying out loud.

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Replying to SteveHa:
By the_drookit_dug
18th Jan 2021 15:50

I don't disagree.

Just further highlighting how irrelevant the tax code is in preparing a tax return. Looking at them may provide a hint that there are benefits that the client has forgotten to inform you about, or simply that HMRC is incorrectly adjusting the tax code, as suggested. Either way, figures for inclusion in the tax return come from elsewhere.

Point taken though, OP shouldn't have clients if they don't understand how it all works.

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