Payrolling Benefit in Kind – Part 1

Registering and reducing administration 

Payrolling benefits can reduce the administration involved in preparing P11D’s and aid employees to pay the tax due on benefits in real time.

Are you interested in kicking this off for tax year 2023/24?  

You need to be quick and register with HMRC before 5th April by clicking here.  

The tax codes for employees receiving benefits will be amended, unless you exclude specific employees via the online service. 

Missing the registration deadline means you cannot payroll benefits until the following tax year unless you have a valid reason. HMRC might agree for you to informally payroll benefits. In this case a form P11D must be completed and submitted by 6th July following the tax year it relates to with the marking ‘Payrolled’ to stop HMRC collecting tax that has already been deducted through payroll. 

The registration is ongoing so you only need to tell HMRC if and when you decide to de-register. Similar to registration, de-registration must be done before the tax year starts. If you change your mind during a tax year, you must continue to payroll benefits and wait until the tax year ends before you stop. 

All benefits can be payrolled with the exception of the following: 

• employer provided living accommodation  
• interest free and low interest (beneficial) loans. 

If you have any questions or want to find out more please contact Devila Rabadia or Pat Strods or fill out the form below and we will get back to you.