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Double counting of taxable benefits could cost thousands

A number of employees could be incorrectly paying too much tax due to double counting of taxable benefits.

Simon Rothenberg, senior manager at Blick Rothenberg said, ‘”When companies restructure their operations due to financial difficulties or when preparing for Brexit, it is often required that employees move from being employed by one legal entity to another and their tax code is reissued at this time.”

He added, “We have seen a number of instances from large employers of any taxable benefits, such as health insurance or car allowances, being applied to both the old and new employment – this results in being taxed for double the amount.”

“If the employee notices, this can be rectified by a call to HM Revenue & Customs (HMRC) and should also be picked up by HMRC following the completion of the tax year; it still leads to a cash out flow which could take over 12 months to recover.”

For more information contact Simon Rothenberg.

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