Payrolling employees taxable benefits and expenses

05 April 2017


If you use Basic PAYE Tools you can now use the payrolling benefits online service, however you still need to have registered with HMRC by 5 April.


Online service

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.

Register and use the payrolling benefits and expenses online service.


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 will 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.