I work for a building society and get a special interest rate on my mortgage. Since having my son, I only work on Saturdays so over the month I do not earn enough to pay tax. What happens about the tax that I have always been charged on my staff mortage rate? I have just received this month's pay slip and over half has taken away as prepayment. Is this the tax on my benefit in kind over the whole year?
You are only liable to pay tax on a benefit in kind if your pay plus the value of the benefit, exceed �8500 in a tax year. If your pay has now fallen to a level that would mean your total annual pay plus the benefit would be below the �8500 mark, then you need to contact your tax office straight away and tell them.