Are you planning on payrolling your benefits in the 2023/24 tax year?
If you have benefits that are provided to your employees, such as private medical or company cars, and provide P11Ds to them each year, I would suggest you consider the option of payrolling the benefit.
This would mean that you wouldn’t need to generate a P11D for each employee and by putting the taxable benefit through payroll; the employee’s tax would be accurate and up to date. P11Ds are submitted in arrears, so there is an obvious time issue with changes to benefit values throughout the tax year, which can be avoided.
If you wanted to start including your benefits in payroll, you need to register with HMRC before the start of the tax year, and we would recommend sooner rather than later as your employees will need their tax codes amended by HMRC to remove the benefit from their personal allowance.
Employer’s Class 1A National Insurance is not taken through payroll for any benefits in kind, and therefore a P11D(b) would still be required by 6th July after the end of the tax year, with payment due by 19th July.
For further details or if you wish to discuss payrolling of benefits in more detail, please contact James Alesbury on 023 8046 1222