HMRC is encouraging employers to payroll employee benefits in kind rather than declaring benefits on their end of year P11D form.
What are the advantages of payrolling benefits in kind however?
- If you’re an employer, you won’t have to submit P11D and P46(Car) forms to HMRC
- Simpler PAYE codes mean HR teams receive fewer queries from employees regarding tax
- Tax deductions in monthly payroll will be more accurate
- Tax codes for individuals should change less frequently
- There will be fewer forms for employers to complete at year-end
If you’re not yet in a position to move to payrolling, you can still move away from legacy paper P11D forms by submitting them online instead. As well as being able to get your forms to HMRC much quicker, this is also a useful first step towards payrolling benefits in kind and bringing your processes into the digital age.
If employers haven’t already done so, they should register online now or before 5 April 2022 to payroll employee benefits for the 2022/23 tax year.
If you have any questions about payrolling benefits in kind or would like help getting this set up, please don’t hesitate to get in touch with PKB.
To read news and blogs from Rebecca Austin, click here >>
