Magee Gammon Blog Payroll Tax your employees' benefits and expenses through your payroll

Tax your employees’ benefits and expenses through your payroll

HMRC recently opened its new ‘payrolling benfits in kind’ online service to employers for registration. Once registered employers will be able to use the online service to payroll employees’ benefits and expenses from 6th April 2016 in place of submitting form a P11D. Payroll Services Ashford

If you are intending to use the online HMRC  Payrolling Benefits in Kind service (PBIK) you will need to register with HMRC.  If you use this service you won’t have to report them on a P11D.

Points to note:

  • PBIK cannot be used for the following benefits which should recorded on a P11D:-
    • vouchers and credit cards
    • living accommodation
    • interest free and low (beneficial) loans
  • If you wish to use PBIK you will need to align your payroll software and register to use the service with HMRC by no later than 5 April 2016.
  • You can’t use PBIK if you use HMRC’s Basic PAYE tools as they don’t support payrolling.
  • All payrolled benefits and expenses you intend to payroll need to be reported on your Full Payment Submission and you must still complete a P11D(b) (End of Year Expenses and Benefits) including the total benefits and expenses provided, whether or not they have been put through your payroll.

If you would like help with your payroll please call 01233 630000 and ask to speak to our Payroll Team

Payrolling Benefits in Kind – further guidance

 

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