Companies considering voluntary payrolling of benefits in kind you will need to notify HMRC by registering via their registering online. You need to register before the start of the tax year you want to payroll for; so by 5 April 2018 for the 2018-19 tax year, however, HMRC do suggest registration is completed in plenty of time prior to the new tax year to allow administration of the changes to be in place.
You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll. HMRC will make sure the value of the benefit is not included in your employees’ tax codes.
If you use the service, you won’t need to use form P11D but you will still need to work out the Class 1A National Insurance contributions on benefits and complete form P11D(b).
Talking Points meeting
This meeting will provide a basic overview of payrolling benefits in kind. It will take a brief look at what happens when you submit a Full Payment Submission and how to use the payrolling benefits and expenses online service. There are two sessions running on Friday 26 May for this popular topic:
11am to midday - Register here for this meeting 1pm to 2pm - Register here for this meetingIf you have any questions, please send them to team.agentengagement@hmrc.gsi.gov.uk prior to the meeting, including the title of the meeting in the ‘Subject’ line of your email.
If you have missed any of HMRC’s earlier Talking Points meetings, you can watch the recordings here.
