Tax, NI and your payslip
my Aviva flex is a flexible benefits scheme. You can choose to 'flex' part of your reward package to suit your needs by using your salary to select from a wide range of benefits. The scheme also brings you the opportunity to enjoy tax and national insurance contribution savings on some of the benefits.
my Aviva flex – Tax & NI Overview (including P11D process)
The tax treatment of each benefit varies. Depending on the benefits you choose, your income tax and national insurance contributions will either be the same or lower than if you continued to receive this part of your salary in cash. Details on the tax treatment of each benefit can be found on the benefit pages on this site.
In general terms employees pay two different types of income tax, monthly on your earnings (called PAYE) or annually on some benefits (called Benefit in kind). Benefits in kind are reported after the tax year end using a form called a P11D. Some of the benefits in my Aviva flex will be reported on your P11D. Click on the link below for more details.
my Aviva flex and your payslip
If you look at your personal reward statement you'll see the amount of your reward package that you can use to select your benefits. This includes your salary, plus any car allowance, location allowance, or private medical benefit allowance that you may be entitled to. It doesn't include your bonuses, overtime or other allowances.
How your choices can affect state benefits
Your entitlement to statutory benefits (for example, statutory sick pay, statutory maternity pay, state pension and any means-tested benefits or tax credits) is affected by your National Insurance contributions and your level of earnings, which may be reduced as a result of your monthly salary adjustments.
If your salary adjustments take you below the Lower Earnings Limit of £602 per month for 2011/2012), this could affect your entitlement to certain state benefits. If you need advice, please call the Working Tax Credit/Child Tax Credit helpline on 0845 300 3900 or visit www.hmrc.gov.uk.