Save Costs! – time is running out to reduce administration burdens and costs by taking advantage of the new set up
For those employers looking to take advantage of the opportunity to include employees' benefits in kind in the payroll from 6 April 2016, rather than completing P11D forms, then you should take the following action ahead of the 5 April 2016;
- Register the intention to payroll benefits with HMRC
- Manage employee communications to ensure smooth transition from P11d reporting to payroll
- Rebuild the payroll components to provide a compliant reporting structure and format for RTI submissions
- Ensure you have in place a reporting function to be able to complete the P11D(b)
Once registered, payrolling of benefits will be carried forward each tax year unless the benefit is removed.
Employers who currently have an 'informal' agreement with HMRC to payroll certain benefits must also register in order to continue to do so from 6 April 2016.
It is important to note that some benefits will still need to be reported on a P11D:
- Vouchers and credit cards
- Living accommodation
- Beneficial loan
If successful, it is likely that this initiative will become compulsory and so it always good to be ahead of the game, as well as the advantage of the reduction in administration from no longer having to complete P11Ds annually.
For more information please contact Charlotte Stewart, Integrated Employment Solutions Assistant Manager, email@example.com for more information.