HMRC is encouraging more employers to payroll employee benefits in kind rather than declaring benefits on the end of year P11D. They have included guidance on registering to use the scheme in their latest employer bulletin.
If employers haven’t already done so they should register online now or before 5 April 2022 to payroll employee benefits for the 2022/23 tax year.
The advantages of payrolling benefits in kind are:
- employers no longer need to submit P11D and P46(Car) forms to HMRC
- simpler PAYE codes mean HR teams receive fewer queries from employees regarding tax
- tax deductions in monthly payroll will be more accurate
- tax codes for individuals should change less frequently
- fewer forms for employers to complete at year-end
If you are not yet in a position to move to payrolling you can still move away from legacy paper P11D forms by submitting them online. You can submit them in one click without worrying about posting them to HMRC. It is also a useful first step towards payrolling of benefits in kind and bringing your payrolling processes into the digital age.
It is recommended that you authorise a tax specialist to handle your tax affairs and deal with HMRC on your behalf. This will ensure that all deadlines are met and that you are not paying more tax than you need to.
Our diverse team of tax professionals within the Beavis Morgan group are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to maximise tax savings is made known to you, and by restructuring your affairs in a tax effective and efficient way.
If you have any concerns relating to your tax return or wish to discuss your tax affairs in further detail, please contact Mariske Byrnes, Alex Nicholl or your usual BM Connect adviser.