Time is running out for employers to submit their Forms P11D for the year ended 5 April 2017. 

The completed Forms P11D and employer declaration Form P11D(b) must be submitted to HM Revenue & Customs before 6 July 2017 and any Class 1A National Insurance liability on benefits in kind must be paid by 19 July 2017 (22 July 2017 if paid electronically).

The 6 July 2017 deadline also applies for Digital Share Reporting (see separate blog) and the finalisation of PAYE Settlement Agreements for the 2016/17 tax year, for particular benefits where the employer is agreeing to settle the tax and National Insurance on behalf of the employees.  The calculation of the amounts due must be submitted by 31 July 2017 with any tax and Class 1B National Insurance payable due by 19 October 2017 (22 October 2017 if paid electronically).

Payrolling benefits in kind

When preparing this year’s benefits, some employers may have identified that there are benefits in kind which would be easier to operate through the payroll in future tax years.  Whilst the deadline for registering for payrolling benefits for the 2017/18 tax year has already passed, applications for the 2018/19 tax year could be made at any time before 5 April 2018.

The payrolling benefits scheme is designed to ensure an employee pays the correct amount of tax, at the correct time through their employment income, rather than wait for it to catch up after the end of the tax year. As mentioned in our March edition of Employer Matters, employers who register with HMRC to use Payrolling Benefits in Kind will identify the type of benefits and employees who are to be included in the process, meaning there’s no need to report these on a Form P11D. This reduces the administrative burden on employers and ensures that employees are appropriately taxed.

Benefits in kind are benefits that employees receive that do not come in the form of payment, including gym memberships, company cars and private medical insurance. Employers will be able to choose which benefits to payroll.

If you're an employer and need some assistance with payrolling benefits, please get in touch, our Employer Solutions team are here to help.