Payrolling Benefits in Kind. Changes made allow HMRC to collect income tax on most benefits in kind through the payroll

The advantages of doing this are:

• You will not have to prepare a P11D form for these benefits
• Certainty – the correct amount of tax is taken through the payroll
• HMRC will remove the benefits from the employee’s coding notices so this should stop the issuing of numerous incorrect coding notices
• No National Insurance Contributions through the payroll i.e. only PAYE

The types of benefits in kind employers are likely to put through the payroll would include, for example:

• Cars
• Vans
• Fuel benefits
• Medical insurance
• Gym subscriptions

If you wish to use this scheme you must register with HMRC before the start of the tax year using their online registration service

If you wish to discuss the above then please do not hesitate to contact us or email to kevin@kwaccounting.com