³ÉÈËÓ°Òô

Year-end benefit reporting


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
tag-icon Year-end tax planning

Year-end benefit reporting


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
tag-icon Year-end tax planning
imgtext

In addition to paying employees their basic pay and other pay-related items such as overtime and bonuses, it is not uncommon for employers to provide benefits and reimburse business expenses. See Simon’s Taxes E4.601.

Unless, there is an exemption in the legislation, the value of these benefits and expenses needs to be reported to HMRC at year-end so that tax and Class 1A NIC can be collected. Class 1A NIC is an employer only charge (there is no corresponding employee NIC charge) on benefits and expenses that have not been subject to Class 1 NIC through the payroll. See Simon’s Taxes E8.233.

For a client factsheet which summarises the PAYE implications of benefits reporting, see the Factsheet - benefits reporting.

P11D and P11D(b)

Benefits and expenses are reported on a P11D or payrolled. See the Voluntary payrolling of benefits in kind guidance note for more on payrolling.

An employer’s declaration is required including the value of both payrolled benefits and those reported on P11Ds and this is made on a P11D(b). See Simon’s Taxes E4.11124.

From 6

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 23 Oct 2024 11:10

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

Class 1 v Class 1A

Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met

Read more Read more
Owner-Managed Businesses

First year allowances

First year allowancesFirst year allowances (FYAs) are available on the following items:•first-year relief on qualifying new main rate plant and machinery (at 100%, which is described by HMRC as ‘full expensing’) and special rate assets (at 50%) from 1 April 2023 (companies only). These FYAs were

14 Jul 2020 11:41 | Produced by Tolley Read more Read more