Year-end benefit reporting

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Year-end tax planning

Year-end benefit reporting

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Year-end tax planning

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 Divisions E4.6, E4.7 and E4.11.

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

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more

Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more

Value Added Tax

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more

Year-end benefit reporting