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P11D taxable benefi...
 
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[Solved] P11D taxable benefits and CMS Calculations

 
(@Scruffy1971)
New Member Registered

Apologies if this has been covered in a previous topic of discussion. In short my review letter stated that I income was (appox) £4,000 more than stated on my P60. On further investigation it transpires that HMRC add your P11D benefits to you annual salary to calculate the tax you owe.

This, at least, cleared up the mystery surrounding my apparent pay rise but my questions are these:

What P11D benefits do the CMS deduct when calculating your new weekly payments?

I have a company car to be able to do my job but should this be included or deducted in my maintenance calculations?

I called the CSA earlier and the people I spoke to were unsure and just advised me to send in a copy of my P60 & P11D for them to look at.

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Topic starter Posted : 09/10/2015 7:39 pm
(@dadmod4)
Illustrious Member

I think the simple answer is that maintenance will be calculated on the salary figure that the HMRC consider to be taxable, so your P11D benefits will be added in. If you are given a benefit in kind, and you are taxed on it, then you'll be assessed for maintenance on it as well.

There is a lot of financial sense in increasing your pension payments now within reason, and if you can afford to do so - partly because pensions payments in early years attract a greater investment income because they will have been invested for longer, but also you get the extra boost that it you don't pay maintenance on the pomey going into pension, so that effectively boosts your pension even more at no additional cost to you.

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Posted : 10/10/2015 11:16 pm
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