Don’t forget that employers can now choose to tax benefits in kind through the payroll.
Most benefits are included. The main exclusions are company cars, vouchers, living accommodation and interest free / low interest loans.
This can remove the need for companies to prepare forms P11d each year, saving on admin costs, and means that each employee’s tax position is always up to date.
When the benefits are payrolled, income tax is paid on the cash equivalent of the benefit, which is split over the pay periods for the tax year, typically weekly or monthly.
Only the income tax on benefits is collected in this way, if the company is liable to pay class 1A NIC on the benefits this is paid annually in the usual way.
To payroll benefits in kind for 2017/18, the company must register with HMRC by 5 April 2017.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.