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Sam
Sam, Accountant
Category: Tax
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I started work in the UK in Feb 2010 as a Tier 2 Intra company

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I started work in the UK in Feb 2010 as a Tier 2 Intra company transfer from the US (I am a US citizen). This was for two years renewed in 2012 for three years, and then in 2015 for ILR. In my taxes for 2013/2014 my employer included their payment for a visa for a Tier 2 dependent (I was still Tier 2 then) on my P11D (this was my son who was born in England in 2013 and needed a visa to live with me). I claimed this as an non taxable expense but on my self assessment and section 336. However it was included as taxable (The Amount Made Good or from which tax is deducted was 0) on my P11D. As such I would have needed to pay tax on this amount, but I claimed as I should not have to on other advice.
Last week I received a letter in the mail from HMRC indicating the government disagrees with this decision. Specifically it says I should check that the employment expenses I claimed are correct and to refile if this is in error. I think my company misclassified the VISA expenses this year (2013/2014) as I have not had these appear on my P11D either before or since. However, others in my company have been in this situation for this tax year and have had to pay the tax on this expense. So, do I need to refile and pay this or was I right not to have paid taxes on this?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question
This is a taxable benefit - so yes you should have paid tax on it, as an expense can only be tax free if its incurred in the performance of your duties, which this was not.
So you were incorrect to claim this under S336 as not taxable.
So you need to maned the relevant tax return so that you pay tax on this amount
Thanks
Sam
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