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hello my name is ***** ***** it is my pleasure to assist you with your question today. have you approached you previous employment HR department with the evidence of you payments
Ok thank you leave it with me I need to look up a few things and then get my advice ready.I will post back on here when done there is no need to wait and you will receive an email when I have responded. I need to go off line for a few hours and will get my advice ready for you on this latter this evening regards ben
Hi, not sure if you received my message earlier, I have moved your question to our Tax category as it is the best place for it to be dealt with. A tax specialist will be in touch in due curse to assist you. Many thanks
Hello, I'm Keith and happy to help you with your question.
I would suggest that you write to your old employer stating the facts of the value of the bicycle you received and the repayments made leaves only the sum of GBP 67 outstanding. HMRC advice on this matter is:
'If a cycle is transferred to an employee after a period of use as a benefit during which the exemption described in EIM21664 applied, the transfer may be taxable either as earnings within section 62 ITEPA 2003 or as a benefit (see EIM21667). In either case, as long as any payment that the employee makes for the cycle is equal to or more than the market value, there will be no tax charge under the employment income rules.
If the employee pays less than market value, the difference will be taxable as employment income.'
Thus the action by your old employer appears misconceived. In any event, as a past employee their comments to HMRC may not be heeded. Watch your tax code and if any adjustment would recover more than the outstanding 63 quid is imposed then write a letter to your current tax office pointing out the correct position and requesting that your code be adjusted to collect the proper sum in accordance with HMRC instruction EIM21667a which I have quoted above.
I do hope I have thrown some light on your true position. In any event the matter can be taken care of at the end of the tax year through your annual self assessment tax return.