PAYE Income 25643
Medical Insurance Payments 584
Income after deductions 26227
Personal allowance 9440
Less total tax allowance 9440
Income tax is chargeable on this amount 16787
Tax on 16787 is;
Basic rate @ 20% on 16787 = 3357.40
Tax chargeable = 3357.40
Tax underpaid = 158.40
NB - I received medical insurance from April 2013 to January 2014 and paid tax at code 885 for those months. I changed jobs from February 2014 and did not get medical insurance so was informed tax code would be 994, which was the code used for February, but then in March 2014, they taxed me at code 885L.
Feeling a bit in 'limbo' now as page has changed to 'open to all tax experts. Am I going to get a response to this today?
So have I understood correctly, although my PAYE coding notice for 2013/14 states the medical benefit is £584, this figure may not be correct to what my employer told the tax office.
HMRC will normally base benefits for the next tax year's tax code on what the final figures were for the previous tax year in the absence of information to the contrary from the taxpayer (you) or the employer. The medical benefit that appears in your tax code will more often than not be an estimate.At the end of the tax year, the employer completes a P11D for each employee who has had taxable employment benefits in the previous year and/or reimbursed expenses. At some stage during the next tax year, HMRC's computer will look a taxpayer's income and benefits for the tax year just ended and issue a P800 tax calculation if there is an underpayment of more than £10 or an overpayment of more than £10.You should ask your former employer for a copy of your P11D which you are entitled to under the law. If the medical benefit in that is the same as the one HMRC have assessed which I suspect it will be as they get the benefits reported to them, then your P800 will probably be correct. Without looking at your payslips I cannot tell where the discrepancy arose but, given the fact that you changed jobs, it may have occurred towards the end of the tax year.