By now you will have already processed your payroll year end and submitted the final RTI submissions.
You have to pay your PAYE by 19th April and issue P60’s by 31st May.
So the next main date is P11D Benefits in Kind! due by 6th July
Last year Dispensations ended and Payrolling Benefits became an option but you must be registered
If you choose to payroll you can tell HM Revenue and Customs (HMRC) online. You need to register online before the start of the tax year you want to payroll for.
You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.
HMRC will make sure the value of the benefit is not included in your employees’ tax codes.
If you use the service you:
- won’t need to use form P11D
- still need to work out the Class 1A National Insurance contributions on benefits and complete form P11D(b)
You can exclude employees from payrolling once you’re registered, but you’ll need to send a P11D to declare the non-payrolled benefits.
Once the tax year has started you’ll have to payroll the benefits for the whole of the tax year, or until you stop providing them.
Many businesses will continue to submit P11D’s
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits.
You’ll also need to submit a P11D(b) form if:
- you’ve submitted any P11D forms
- you’ve paid employees’ expenses or benefits through your payroll
- HMRC have asked you to – either by sending you a form or an email
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
If HMRC have asked you to submit a P11D(b), you can tell them you don’t owe Class 1A National Insurance by completing a declaration.
Expenses covered by an exemption
You don’t have to report certain business expenses and benefits like:
- business travel
- phone bills
- business entertainment expenses
- uniform and tools for work
To qualify for an exemption, you must be either be:
- paying a flat rate to your employee as part of their earnings – this must be either a benchmark rate or a special (‘bespoke’) rate approved by HMRC
- paying back the employee’s actual costs