Payroll Legislation

Should Employers Payroll Staff Benefits and Expenses?

Legislation

Should Employers Payroll Staff Benefits and Expenses?

Due Date

4 April 2022

Summary

HMRC is encouraging employers to consider payrolling the benefits and expenses they pay to staff.

The advantages of payrolling expenses and benefits are that employers will no longer need to submit multiple P11Ds, and employees will be more likely to pay the correct tax due on their benefits during the tax year. Employers will still need to work out the Class 1A National Insurance contributions on benefits and complete a single P11D(b) form for the year.

You can payroll your benefits and expenses as long as you’ve registered with HMRC before the start of the tax year. To use this method for the 2022 to 2023 tax year, you’ll need to register online before 6 April 2022.

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