17th May 2016

On 6th April 2016 HMRC introduced a payrolling benefits in kind service to account for the tax on the benefits, if any, provided to your employees. To avail of the service you should register with HMRC.

Payrolling benefits should reduce employers’ reporting obligations and simplify the process of collecting tax on benefits. In the long term it should therefore reduce administration time and create efficiencies for employers as well as being easier for employees to understand.

Which benefits you can payroll.

You can payroll all benefits apart from:

  • vouchers and credit tokens

  • employer provided living accommodation

  • interest free and low interest (beneficial) loans

You must still report these excluded benefits on a P11D, even if you are payrolling other benefits for the same employee(s).

To find out more please contact Rebecca Neill or Emma McCrossan on +44 (0) 28 9032 3466.