P1Fanatic

I just received a PAYE Coding Notice for 07-08. It says my personal allowance has been reduced by £424 due to my Private Medical Cover with work. I was under the assumption that I should only be taxed on this benefit i.e. 40% of the £424 and not the whole amount my company paid for the policy ? Can anyone else clarify how theirs is deducted? Id rather not ring HMRC yet as looking at last years PAYE Code they didnt reduce my allowance at all even though Ive had it declared in my P11D's for last 4 yrs.

Cheers,
Simon

ChefDude

you can ring anonymously

i did several times as a contractor to work out how to scre... do things correctly

Jay m A

iTrader: (2)

You'll probably find that £424 is the 40% figure. Best to check with whoever does the P11D, rather than HMRC?

P1Fanatic

I talked to the old dear who is better with these things. Its correct as basically by reducing my tax free allowance by £424 I am paying the tax on that amount and not actually losing £424 in cash so to speak. Makes sense now but damn am I the only one who finds working out tax a nightmare?

Simon