A question that comes up from time to time is about payrolling benefits. Form P11D is usually submitted as an end-of-year report to HMRC for each employee that has been provided with benefits not included in their wages ...
Yes, you can now payroll benefits to your employees, though you must register with HMRC before the start of the tax year you wish to payroll benefits in. You can find out more about this by clicking here.
Whenever you payroll benefits, you add in the cash equivalent of the benefit to your employees onto their taxable pay then simply tax them through your payroll system in real-time.
If you choose to payroll benefits then you no longer need to produce P11Ds for your employees, but will still have to calculate Class 1A National Insurance on P11D(b) by the 6th of July following the end of the tax year you payrolled the benefits.
I feel that it is beneficial to employees that tax on benefits is collected through the payroll in real-time rather than having their tax code adjusted in the following year.
But do find out if this is suitable for your business beforehand.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.