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Wednesday, 5 September 2023

Money, tax and benefits

Employer benefits - work them out for your tax credits claim

When the Tax Credit Office works out your tax credit payments, they take into account the value of certain benefits you receive from your employer. These are called 'benefits in kind', and include things like mileage allowance payments for using your own car, or a company car and fuel.

Benefits from your employer

Benefits in kind from your employer aren't paid as wages but they are taxable. When you claim or renew your tax credits, you'll need to give the total cash value or taxable amount of any benefits you've received.

You don't have to work out the amount of each individual benefit because your employer will give you a P11D or P9D form. This will tell you the taxable values.

The table below sets out what you need to include on your claim form.

Type of benefit	Where to find the amount on your P9D or P11D
Any mileage allowance payments over the tax free approved amount	Section E of your P11D
Running costs your employer has paid for	Section E or included in section N in your P11D
A company car	Section F of your P11D (box 9)
Car fuel	Section F of your P11D (box 10)
Expenses payments made to you unless they were business expenses	Section J, M or N of your P11D, or section A (1) of your P9D
Goods and assets your employer has given to you, for example gifts of food and drink	Section A of your P11D, or section A (2) of your P9D in the third or forth boxes
Payments made by your employer on your behalf, for example if your employer paid your rent directly to your landlord	Section B of your P11D, in the first box numbered 15, or section A (2) of your P9D in the first, second and fifth boxes
Vouchers or credit tokens, for example company credit cards (Don't include the cash equivalent of childcare vouchers if they are used to pay for registered or approved childcare.)	Section C of your P11D, or section B of your P9D (add together all the boxes)

To calculate your benefits, add the value of all these benefits together and round the total down to the nearest pound. For example, if the total value is £256.73, then you should put £256 on your form.

For help calculating the value of your benefits, use the worksheet in the notes that came with your tax credits claim form or renewal pack. Or you can call the Tax Credit Helpline.

Download 'Getting your tax credits claim form right' (PDF, 3MB) Opens new window

Download 'Renewing your tax credits - Getting it right' (PDF, 733K) Opens new window

Contact details for the Tax Credit Helpline

Help with PDF files

If you've had more than one employer

If you've had more than one employer during the tax year, you may have received more than one P11D or P9D form. A tax year runs from 6 April one year to 5 April the next.

You need to add together the totals from each form to show the total amount of benefits received from all of your employers.

Reporting a change in income

The amount of tax credits you get depends on your annual income. It's a good idea to tell the Tax Credit Office if you:

expect that your annual income - including benefits in kind - for the current tax year will be less than your annual income for the previous tax year
expect that your annual income - including benefits in kind - for the current tax year will be more than your annual income for the previous tax year

If you don't tell them, you may not get all of the money you're entitled to or you may have to pay back an overpayment.