Correction required

19 February 2013

Issue: 4391 / Categories: Forum & Feedback , Employees , Income Tax

An employee believed her employer was providing personal health insurance and the benefit of this was shown on forms P11D. Following a takeover, she has discovered that the policy was an insurance scheme that paid the employer in the event of her illness. Can a tax repayment be obtained?

My client’s employer a law firm was recently taken over.

While agreeing her terms of employment with the new firm she discovered that what she had thought was personal health insurance provided by her old employer – and which had appeared on her P11D for some years – was in fact an insurance policy that would pay the employer not her if she was off sick.

She had not questioned her coding because she thought a benefit of that value was being provided to her but in fact it was not.

She asked HMRC to repay the tax that had been suffered on this false benefit.

They replied that they would require the submission of corrected P11Ds not simply a letter from the partners of the former firm (which no longer exists and certainly doesn’t have a human resources department...

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