Payrolling Benefits – Advantages worth signing up for…
Introduced back in April 2016, we have now seen the first tax year of HMRC’s voluntary payrolling of benefits pass relatively smoothly for both HMRC and employers. This scheme, which allows employers to choose to process the benefits provided to…
Blog23rd Aug 2017
Introduced back in April 2016, we have now seen the first tax year of HMRC’s voluntary payrolling of benefits pass relatively smoothly for both HMRC and employers. This scheme, which allows employers to choose to process the benefits provided to their employees through payroll each month to allow tax to be collected on a real time basis, has seen significant benefits for both the employee and employer.
For employers, benefits were mainly the removal of the requirement to submit forms P11D for employees in July after the tax year end and as a result of this, cost savings and a reduction in the administration surrounding employee benefits were seen. This left only a P11D(b) to be returned confirming the total benefits payrolled and detailing the Class 1A National Insurance due.
For employees, as their tax was being collected on a real time basis, this reduced confusion with adjustments being processed through their tax codes for benefits received in prior years. This also reduced any underpayment of tax at the end of the year relating to benefits received following the submission of their P11D.
If you are interested in payrolling benefits it’s not too late to register to do so from 2018/19. Registration is open until the end of the 2017/18 tax year and can be completed using your online HMRC dashboard.
If you require any assistance or would like any further information on payrolling benefits, please do not hesitate to contact Megan McDonald (email@example.com) or your usual AAB contact.