Tax Returns

I've just realised i've been on an emergency tax code (0T-M1) since starting my new job in May last year...

Obviously, i should have noticed this a lot sooner but any idea how i go about changing this and also calculating/reclaiming the back pay?

^ sorted after waiting on the line to HMRC for an hour

Not strictly a tax return Q. But does anyone know how dependents and benefits in kind work?

Ie do I pay tax for dependents reviving a BIK?

do I pay tax for dependents

Somebody might know of some weirdness, but as a general principle UK income tax is a personal tax, not a household tax (as it is in some other jurisdictions). In that case, your dependant's tax liability is their own, as is their personal allowance. The exception to the general principle is the very limited amount of personal allowance which can be transferred from one spouse to the other in some circumstances.

Probably. Depends on the benefit but you would normally expect it to appear on your P11D and hence taxed.

you would normally expect it to appear on your P11D

Why would it appear on his P11D if somebody else is receiving the benefit?

I'm assuming it's an immediate family member who is receiving the benefit but isn't employed by the firm (a company car for spouse/child for instance).

The BIK in that case would fall to the employee, it's a benefit of the job. You can't prepare a P11D for a non-employee.

an immediate family member who is receiving the benefit but isn't employed by the firm

Health insurance for immediate family members.

Both your answers are why I'm getting stuck.

I'd say it's your BIK looking at the second bullet point.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21762

Both your answers are why I'm getting stuck

If you'd given the details in the first place, you wouldn't be stuck. I'm with aggi, insurance is your benefit because it indemnifies you from costs which you would otherwise normally pay, i.e. healthcare for your dependants.

Yes, Medical Insurance for my wife and daughter appears on my P11D and I therefore have to pay tax on it as a BIK.

Cheers.

Looking at my final payslip of the current period there is a discrepancy between taxable and NI-able pay of £3,541.

What's causing that?

What's causing that?

You were reimbursed for about 27000 miles of business travel in your own car?

Ah yes, I drove to Australia for work and then forgot about it.

self employed, so do an annual tax return

I assume I need to declare small amounts of extra income through selling items that I make?
I dont charge VAT on the items, if that makes a difference.

You do. Although you can obviously also deduct associated costs. Materials, tools, shipping, etc

I'm not sure it's quite as simple as that.

You don't need to declare small income as a result of a hobby, as long as you don't meet the HMRC badges of trade.

You can also sell up to £1000 of things you have made per tax year without declaring it. This is to provide some leeway for people making a few bits and bobs and selling on Etsy etc.

Interesting. Thanks. I've sold maybe £500 max on etsy, on here and in local shops.

Wouldn't be surprised if there was a guidance page for Etsy sellers on the HMRC web site. Worth a Google.

I thought that the £1,000 hobby threshold won't apply if you're self employed. That it's designed for those who earn a salary (and pay tax at source) and then earn under a grand on the side. If you're self employed I assume you'll earn more than £1,000 in total.

It's a fairly new rule though so I'm not 100% on that.

My tax code has changed, it now has W1/M1 on the end, which Googling tells me is an emergency code - why would this have happened?

They’ve been tracking how much money ur splurging on various LFGSS threads and decided you must be hiding something?

Do I have to claim the running costs of my business (expenses) when I complete self-assessment? Or can I choose not claim any expenses?

Have you changed jobs?
W1/M1 means the allowances do not take into account the previous earning in the financial year, so each payment is looked at in isolation.

Has the code changes as well?
Unusual to go from cumulative to non cumulative on the same coding.

(/Payroller)