Did you know you could save time and money by automating the requirement of completing P11ds for your employees? The employees tax on expenses and benefits can form part of your payroll, saving you the time and cost of filing P11ds.
HMRC cannot process changes to this scheme mid-year, therefore employers need to confirm their payroll software is aligned and have registered to payroll benefits by 5 April 2017. To avoid employees being sent multiple tax codes during the following tax year, we would advise you to register in November before HMRC’s annual coding process is undertaken.
You can also exclude certain employees from payrolling benefits directly via payroll and continue to use the traditional method of completing a P11d form for those individuals. However, it is important to remember once they are excluded they cannot join the process mid-year. The requirement to produce a P11d(b) form calculating the class 1A National Insurance contributions on benefits will apply for all employees receiving benefits in kind.
Before you start, you should contact your accountant and ensure the payroll software is compliant and discuss who should be included or excluded from the process. Please note HMRC’s Basic PAYE Tools does not support payrolling benefits for 2017/18 tax year.
If you would like to discuss, or want help, call Lee Reynolds on 01788 539000.