26 November 2021
Payrolling of benefits in kind was first launched in April 2016. Since then, it has successfully simplified the reporting and payment of taxes for employers and employees alike. From a payroll perspective, it is straightforward to incorporate into payrolls – the key is ensuring that the preparation work has been done first.
As the end of the year approaches, now is a good time for employers to consider taking advantage of payrolling benefits. The essential first step is to review the benefits to check they are suitable for payrolling. Advice may be needed to ensure the treatment of each benefit is correct and that payrolling is suitable.
Once aligned, registration must be done with HMRC before the new tax year. The benefits can then be set up in the payroll, similarly to other payments and deductions, ready for use from April. For more information on what you should know about payrolling benefits in kind, please click here.
While there are benefits, such as reduction in admin with P11Ds, there are some other considerations. We discussed these in our article 'Payrolling of benefits – avoid the pitfalls'.