Legislation to require employers to report 'Benefits in Kind' in real time as opposed to the end of year form P11D was included in the first Finance Act of 2015. However, there are concerns amongst accountants that this should not be mandatory until 2017/18 at the earliest, as many employers are only just getting to grips with real time processing of basic wages and salary data.
The new system will require employers to calculate the cash equivalent of the Benefit in Kind and effectively spread it over the tax year. The tax due on benefits will then be collected by adding a notional value to the employee’s payroll, rather than reporting the Benefits in Kind separately on the end of year form P11D.
If you continue with this process the P11Ds you submit may be processed and your employees may be taxed twice on their benefits. To avoid this you should use the online PBIK service to register the benefits you’re payrolling. This means you’ll no longer need to submit P11Ds for payrolled benefits and expenses.
More about Payrolling Benefits in Kind online service
Please get in touch with us if you would like to use this system for 2016/17 as you will need to register with HMRC before 6 April 2016.
☎ 020 89310165 | ☏ 07900537459 | ✉ info@apjaccountancy.com
The new system will require employers to calculate the cash equivalent of the Benefit in Kind and effectively spread it over the tax year. The tax due on benefits will then be collected by adding a notional value to the employee’s payroll, rather than reporting the Benefits in Kind separately on the end of year form P11D.
End of Informal Payrolling process
If you have an existing informal payrolling arrangement with HMRC this will stop on 5 April 2016.If you continue with this process the P11Ds you submit may be processed and your employees may be taxed twice on their benefits. To avoid this you should use the online PBIK service to register the benefits you’re payrolling. This means you’ll no longer need to submit P11Ds for payrolled benefits and expenses.
More about Payrolling Benefits in Kind online service
Please get in touch with us if you would like to use this system for 2016/17 as you will need to register with HMRC before 6 April 2016.
☎ 020 89310165 | ☏ 07900537459 | ✉ info@apjaccountancy.com
No comments:
Post a Comment