PAYE: payrolling benefits in kind guidance

HMRC has published detailed guidance on the payrolling of benefits in kind.

From tax year 2016/2017, employers will be able to account for the tax on benefits in kind through PAYE each pay day, but in order to do so they must register with HMRC before the start of the tax year.

Registering with HMRC allows the employer to payroll tax on benefits without having to submit P11D forms after the end of the tax year. However, the reporting and payment of Class 1A NICs on benefits remains the same, so employers will still need to work out the Class 1A NICs on the cash equivalent of the benefit and complete Form P11D(b) by 6 July.