05 October 2023
HM Revenue and Customs (HMRC) has updated the ‘Employer Bulletin: August 2023’.
The Employer Bulletin is a bi-monthly magazine for employers and agents that gives up to date information on payroll topics.
Further clarification has been added to the Benefits in kind — informal payrolling 2022 to 2023 article. If an employer has formally payrolled all of their benefits in kind for the 2022/23 tax year, HMRC does not need form P11D to be filed online. Employers must still work out the Class 1A National Insurance contributions (NICs) on the benefits and complete form P11D(b) online.
HMRC only requires a P11D from employers with an informal agreement for the 2022/23 tax year, whereby they have started payrolling midyear. For example, an employer requested an informal arrangement to payroll benefits in kind on 1 June 2022, HMRC would need the P11D to cover the period from 6 April 2022 to 1 June 2022. From 2 June 2022 onwards, if the employer has payrolled the benefits in kind HMRC does not need a P11D to cover 2 June 2022 to 5 April 2023. Employers need to tell HMRC by using the online form PAYE notification of payrolled benefits so those benefits in kind on the P11D reflect 6 April 2022 to 1 June 2022.
You can find more information on payrolling employees: taxable benefits and expenses, this includes the link to PAYE — notification of payrolled benefits form.
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