Help Benefit in Kind tax

[ChateauProvence]

Hi, would anyone be clever enough and mind helping me working out what I need to declare to HMRC for my beneficial loan (mortgage). I received an email tk say my tax code for next year is being changed from 1257L to 350L and I am struggling to see how this is correct/ worked out

i I have a mortgage and get a staff benefit of receiving a 0.1% discount from the customer rate - I have 3 different parts to the mortgage

£98k - 1.48%
£161k - 1.41%
£181k - 4.4%

it looks like my tax free allowance is going to reduce by £9k next year due to the beneficial loan which if is correct is obviously fine but if it isn’t I would like to update HMRC soon as I am on maternity leave so every penny counts and I don’t want to wait for them to correct through a tax rebate

any help would be very appreciated

thanks!

What was on your P11D for last year that will be what they are using to calculate the benefit. There should be a value on the benefit on there which tax is calculated on.

Thanks it was £1142 I think

Have you got other things on there private medical insurance etc. normally HMRC send you a letter with the tax code saying how it is broken down.

I do have private medical insurance but have always had that - the reduction in my tax free allowance just feels like a hell of a lot

I know nothing about this, but 0.1% of 440k is £440.

40% of 9000 is 3600. Half that if you are on basic rate tax (I've assumed not due to the mortgage value). So something else is going on. You need the decision letter detailing everything they are discounting. Child benifit? Car? Anything else seen as a tax free benifit?

Thank you , no I’m a basic rate tax payer (partner earns more) and no child benefit/ car/ or anything else so I think somethings going wrong

That's too much of a reduction if it's solely due to your mortgage discount.

It doesn't matter what the specific interest rates are on the different portions, if it's simply a 0.1% discount on what an ordinary customer gets then your annual benefit in kind is only £440 so that doesn't come anywhere close to the amount HMRC has calculated. Is it possible that someone calculated it as a 1% discount instead?

Everything you get from your employer other than salary, pension contributions and participation in specific salary-sacrifice schemes (eg Bike to Work) should be translated into a monetary value and taxed. HMRC clearly reckons you are getting several thousand pounds of such benefits. If they aren't correct you should do a Self Assessment form declaring everything so that it can be recalculated.