Payrolling Benefits – Not too late to get your registration in place!
Since April 2016 we have seen more and more employers decide to voluntarily process their employee benefits through payroll allowing tax to be collected on a real time basis each payroll period rather than by adjustment to employee tax codes…
Blog8th Feb 2018
Since April 2016 we have seen more and more employers decide to voluntarily process their employee benefits through payroll allowing tax to be collected on a real time basis each payroll period rather than by adjustment to employee tax codes in the following tax year.
This has meant employees have seen a reduction in the number of confusing adjustments through their tax codes for incorrect benefit values or even benefits they no longer receive!
The scheme has also given those employers operating it far simpler end of year reporting obligations with the removal of the requirement to submit P11D forms for benefits processed through payroll. This leaves only a form P11D(b) stating the total benefits provided to employees in the year to be completed and submitted to HMRC allowing the Class 1A National Insurance due which cannot be collected through payroll to be calculated.
If this scheme is something you would be interested in operating it is not too late to register for the 2018/19 tax year with registration open until 05/04/2018 . We then recommend notifying your employees of the changes they can expect to see and the impact on them to minimise queries.
If you require any assistance or any further information on payrolling benefits, please do not hesitate to contact us.
AAB will be covering payrolling benefits and the actions required at their Business Breakfast on 27th February. To secure your place please register here.