In The News
The rush to file P11Ds in July can put pressure on already stretched dealership accounting resources. By opting to payroll benefits in kind, this could be the last year you have to file these forms. You will need to act quickly though as you must inform HMRC of your decision before the start of the tax year in April.
With payrolling, instead of benefits being reported on P11Ds, they are included as part of taxable pay in the payroll. The calculation of the benefit doesn’t change, but the tax cost is spread across all pay periods in the year. This means that employees’ are always up to date with their tax liabilities, and any change in the value of benefits has an immediate effect. This should avoid those awkward conversations triggered when HMRC react to P11Ds that have been filed.
You will still need to complete form P11Db to account for any Class 1A National Insurance that is due, but no P11Ds are required unless someone receives beneficial loan or living accommodation benefit.
Full details of what you need to tell your employees and how to register can be found on the HMRC website at:
In case of any questions please do not hesitate to contact us and we will be happy to help!
Author: Michelle Malone