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 Client factsheet ― benefits reporting.

P11D and P11D(b)

Benefits and expenses are reported on a P11D or payrolled. See the 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

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Personal Tax

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more

Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more

Year-end benefit reporting