HMRC has announced a P11D concession for those employers that registered to voluntary payroll Benefits in Kind (BiKs) for 2017/18 outside of the new Optional Remuneration Arrangements (OpRA).
The concession is required because the PAYE regulations have not been updated following the OpRA BiK changes in section 7 and schedule 2 of the Finance Act 2017.
The original text of the HMRC concession states:
Employers who have registered to payroll BIKs are seeking clarification regarding the submission of P11Ds when payrolling under OpRA. Some of these employers have been payrolling the tax on OPRA but identify that a P11D will still be due.
The current legislative position is that the relevant amount should be reported on Form P11D. However, we appreciate that this will be a burden to employers as they may need to send two separate returns for the same BIK therefore we propose the following concession for employers in this position for 2017-18.
Where an OPRA employer has:
registered with HMRC to payroll BIKs outside of OpRA for the 2017-18 tax year and is deducting tax for a BiK which is subject to the OpRA reformThere will be no requirement to complete a P11D as long as they report the Relevant Amount, (per the valuation rules in ITEPA) along with the taxable amounts for payrolling periods through RTI.
Example
£6,000 is the relevant amount for 2017/18 in respect of a company car. The employer payrolls from September 2017 and deducts the tax due in respect of the £6000 from the employee’s wages for the remainder of the tax year.
Please note this concession only applies to employers who registered to payroll BiKs for 2017/18 outside of OPRA and have been payrolling Relevant Amounts where there is tax due.
More information and examples of this concession can be found in the August Employer Bulletin on page 3.
