‘I got back £4,300 just by checking my tax code was right’ – HMRC repaid a woman thousands after she discovered she was taxed as if she received child benefit.

The above was a story in the guardian ( ‘I got back £4,300 just by checking my tax code was right’ | Tax | The Guardian ) that rings true for a lot of people.

People will often end up on the wrong tax code as incorrect information has been passed to HMRC somewhere along the line.

For example – your old employer doesn’t report that you have left their employment, HMRC starts to think you have 2 jobs.

Perhaps you applied for Marriage Allowance year ago and HMRC still believes you want it applied.

Getting your tax code corrected just involves a call to HMRC, so is relatively simple to fix.

If you are having trouble with your tax code, give Sharon a call on 0203 151 2354.

AllianceCA – helping you keep more of your money

PPE for staff – tax impact

Good news for employers and employees.

HMRC have advised that if an employer provides employees working in COVID-19 high-risk environments with PPE and coronavirus tests, then these will not been seen as a taxable “Benefit In Kind”. This follows HSE guidance that employers should provide PPE to employees where there is a risk to safety. 

Despite issuing guidance to the contrary earlier this week, HMRC have now confirmed that Coronavirus tests provided by the government as part of its national testing scheme will not be a Benefit In Kind (BIK) for tax purposes and no Income Tax (for the emmployees) or Class 1A NICs (for the employers) will be due.

Equally where employers provide testing kits to employees outside of the national testing scheme, whether directly or by purchasing tests to be carried out by a third party, there will also be no BIK. Where employees are working in a situation where the risk of Coronavirus transmission is very high and the employer risk assessment shows that PPE is required, the employer must provide PPE to employees and this will be non-taxable.

We think this is great news, and a welcome relief to businesses and employees who are already struggling under Covid 19.

Want to know more – get in touch and drop an email to sharon@allianceca.co.uk

#HMRC #BIKs #AllianceCA #Non Taxable #Coronavirus Testing