Payroll Legislation

PAYE on Medical Benefits

Legislation

PAYE on Medical Benefits

Due Date

Ongoing

Summary

If you report medical benefits through payrolling benefits in kind, or the legacy P11D process, you may find the 2020 to 2021 taxable value has changed.

The reportable value of the benefits in kind is the cost less any refund related to that year, regardless of when it’s received. If you’re currently payrolling benefits in kind, you may need to adjust the taxable value by way of an amended Full Payment Submission, and the correct value on the P11D(b) submission.

If you use the legacy P11D process, then to ensure your employees are not overtaxed and the correct amount of Class 1A National Insurance is reported, please make sure you have any discussions with your medical benefit provider before the P11D deadline and report the correct taxable value on P11D submissions and on the P11D(b).

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