Guidance on payrolled expenses and benefits
HMRC have published new guidance for employers that have payrolled any expenses and benefits. It remains a requirement that employers who have entered into an arrangement to payroll benefits in kind and expenses must submit completed P11Ds to HMRC. Employers that fail to submit the necessary P11Ds may be liable to penalties.
The new guidance provides details of the correct actions for submitting P11Ds depending on which scenario applies to an employer’s specific circumstances.
For example, if an employer has payrolled all the expenses and benefits paid to their employees and files P11D information online, the employer must:
- telephone the Employer Helpline at least a week in advance of any online submission of their P11Ds, advising them that payrolling has taken place in that year, in order to avoid incorrect processing of the data;
- complete the ‘amount made good or from which tax deducted’ boxes (where this box is available for the relevant benefit);
- complete the P11D(b) as normal.