CIPP survey: Alignment of dates for ‘making good’ on benefits-in-kind
07 September 2016
The CIPP Policy team has created a short survey on proposals to align the ‘making good’ rules for BiKs with those where the employer accounts for the BiK in real time through PAYE. Please help inform our response by completing the survey; it should only take 10 minutes of your time.
The Office of Tax Simplification, employers and representative bodies have made it clear to the government that there are problems with the existing rules for employees ‘making good’ the value of the benefits-in-kind they receive from their employers. They have highlighted that for some benefits-in-kind there are a number of different dates set out in legislation and in HMRC guidance.
Additionally, for some benefits-in-kind they have highlighted the practical difficulties of complying with the dates in legislation, which has to a large part led to the inconsistencies with HMRC guidance.
The recent introduction of new dates for making good on benefits-in-kind where the employer accounts for the benefit-in-kind in real time through PAYE (payrolling) has highlighted the lack of consistency and potential for confusion. The government has now issued a consultation document exploring the scope for aligning the making good rules for benefits-in-kind with those where the employer accounts for the benefit-in-kind in real time through PAYE.