Man in suit pressing payroll icon which appears on virtual screen in front of him
Using HMRC’s online services for expenses and benefits in kind

Payrolling of expenses and benefits in kind

As reported in our March 2023 edition of Employer Focus, employers are no longer able to ‘informally’ payroll expenses and benefits in kind but must register for HMRC's online service prior to the start of the tax year in which any payrolling is to apply.

Employers who are not yet payrolling benefits in kind and expenses will need to register before 6 April 2024 for payrolling to apply for the 2024/25 tax year. The registration, once made, is ongoing so employers only need to tell HMRC if they decide to cancel their registration.

Employers payrolling benefits in kind:

  • may have a Class 1A National Insurance contribution (NIC) liability and will still need to file a P11D(b) to tell HMRC how much Class 1A NICs is owed.
  • will need to give employees a letter explaining what benefits and expenses have been payrolled.
  • will need to file a P11D with HMRC for each employee in receipt of any benefits in kind that were not payrolled.

Filing forms P11D and P11D(b)

For those employers who are not payrolling benefits in kind and expenses, the deadline for submitting 2023/24 P11Ds and P11D(b)s is 6 July 2024. For late submissions, HMRC charge penalties on a monthly basis and issue penalty notices each quarter.

The 2023/24 forms P11D and P11D(b) must be filed online using either:

REMINDER NOTE: From 6 April 2023, HMRC no longer accept paper P11D or P11D(b) forms.

If employers need to amend previously submitted forms P11D and P11D(b), HMRC have published guidance on how to correct an error on a P11D or P11D(b).

 

This article reflects the position at the date of publication (16 January 2024). If you are reading this at a later date you are advised to check that that position has not changed in the time since. 

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