It is now possible to include your employee benefits on the payroll rather than completing a separate P11D. It can make benefit in kind taxes easier to understand as well as offering a more efficient way of collecting the correct amount of tax in real time. Employers are required to register to use the payrolling benefits service before the start of the tax year so to register for 2019/20 you will need to do so online with HMRC prior to April 2019.
The benefits which can be included in payroll are the following:
- Car fuel
- Medical insurance
These benefits will need to be included when you report your payroll information in your full payment submission.
You are unable to report the following benefits through payroll:
- Credit Cards
- Living Accommodation
- Interest free loans
Once you have registered to use the service, HMRC will issue your employees with a revised tax code which removes the benefits.
Currently you are unable to report your Class 1A NICs due so you are still required to submit the form P11Db to report these on an annual basis.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
Alice Gay ACCA ACIPP
Chartered Certified Accountant
Alice joined Evolution ABS in July 2013 after completing her A Levels at the Woodroffe School. She has completed her AAT with Richard Huish College, and was nominated for higher apprentice of the year in Somerset and finished in the top 3. Alice has recently passed all of her ACCA exams and officially qualified in May 2018, since this, Alice has now completed her Payroll Technician Certificate.
In her spare time she is an active member of Axminster Young Farmers, and enjoys riding her horse and walking her dog. She lives at home with her family who have a dairy farm in East Devon and enjoys being outside in the countryside whenever possible.