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Payrolling employee expenses and benefits

18 April 2024

Employers can register for payrolling benefits and expenses. Deadlines exist for form submissions, with penalties for lateness. HMRC no longer accepts paper forms or new informal arrangements. Accurate completion of forms is crucial, including details of provided cars and loans.

Payrolling Registration and Benefits

Employers have the option to register voluntarily before the tax year starts to report and account for tax on certain benefits and expenses through the RTI system. This process, known as payrolling, eliminates the need to complete a P11D for the chosen benefits at the end of the tax year.

As of 6 April 2024, registration is open for payrolling your benefits. Please note that as of 6 April 2023, HMRC no longer accepts new informal arrangements. If you previously had an informal arrangement, you must register to payroll your expenses and benefits for 2024-25.


Submission Deadlines and Penalties

The deadline for submitting the 2023-24 forms P11D, P11D(b), and P9D is 6 July 2024. You can submit these forms using commercial software or via HMRC’s PAYE online service. Please note that HMRC no longer accepts paper P11D and P11D(b) forms. By the same date, you must also provide employees with a copy of the information about them on these forms. Unless the employer has registered to payroll benefits, P11D forms are used to inform HMRC about all Benefits in Kind (BiKs), including those under the Optional Remuneration Arrangements (OpRAs).

Regardless of whether the benefits are reported via P11D or payrolled, a P11D(b) is still necessary for Class 1A National Insurance payments. The deadline for paying Class 1A NICs is 22 July 2024, or 19 July if paying by cheque.

If no benefits were provided from 6 April 2023 to 5 April 2024 and you receive a form P11D(b) or P11D(b) reminder, you can either submit a ‘nil’ return or notify HMRC online that no return is necessary. It’s important for employers to accurately complete their P11D’s, including all details of cars and loans provided. Penalties of £100 per 50 employees apply for each month or part of a month a P11D(b) is late. Late payments may also incur penalties and interest.

Source: HM Revenue & Customs Tue, 16 Apr 2024 00:00:00 +0100

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