Taxable Benefits

jimbo · June 22, 2009, 09:44:25 AM

In layman's terms can anyone explain these and how they affect your salary; For example:

Salary £20k

Medical insurance for whole family - Taxable Benefit £600, Cost to you £600.

With these variables, if the option of taking the insurance is availed of what will be the net monthly deduction from base salary - £50, and if so what is the significance of stating Taxable Benefit £600?

Mhic Easmuint · June 22, 2009, 10:13:54 AM

Not just 100% sure but think that the value of the benefit is added to your salary to be taxed
So say you didn;t take the benefit you would just be taxed on £20,000.
But if you did you'd be taxed on £20,600.

The Iceman · June 22, 2009, 02:10:23 PM

I think it means that your tax effected salary is now 19,400
therefore giving you a Taxable benefit of 600?

The 50 per month will be taken out pre-tax

Our Nail Loney · June 23, 2009, 08:08:06 PM

THREAD HIJACK

How can I work out how much I am supposed to lose a week in tax??

Is there anywhere online with the limits etc?

pintsofguinness · June 23, 2009, 08:16:26 PM

Quote from: Our Nail Loney on June 23, 2009, 08:08:06 PM
THREAD HIJACK

How can I work out how much I am supposed to lose a week in tax??

Is there anywhere online with the limits etc?

http://listentotaxman.com/

Our Nail Loney · June 23, 2009, 08:31:19 PM

Quote from: pintsofguinness on June 23, 2009, 08:16:26 PM
Quote from: Our Nail Loney on June 23, 2009, 08:08:06 PM
THREAD HIJACK

How can I work out how much I am supposed to lose a week in tax??

Is there anywhere online with the limits etc?

http://listentotaxman.com/

Cheers Pints, I am getting taxed right then. Thought sometimes it seemed too much. I was wrong

Armaghtothebone · June 23, 2009, 09:02:46 PM

Make sure you fill out a P87

Nothing(with the exception of wining Sam) is as sweet as getting a cheque through the post from the taxman.

Our Nail Loney · June 23, 2009, 09:09:12 PM

Quote from: Armaghtothebone on June 23, 2009, 09:02:46 PM
Make sure you fill out a P87

Nothing(with the exception of wining Sam) is as sweet as getting a cheque through the post from the taxman.

What's a P87?

I am totally clueless re: tax matters

Rois · June 23, 2009, 10:00:29 PM

Quote from: Mhic Easmuint on June 22, 2009, 10:13:54 AM
Not just 100% sure but think that the value of the benefit is added to your salary to be taxed
So say you didn;t take the benefit you would just be taxed on £20,000.
But if you did you'd be taxed on £20,600.

Correct. It's not a deduction of the value of the benefit, it just means that it's an extra chunk that's chargeable to tax.