HMRC is changing how employers report the benefits in kind they provide to their employees and directors.
From April 2027 employers must “payroll” benefits, which involves including them as part the taxable salary on which PAYE tax is due when the employee/director is paid.
“Payrolling” will negate the annual chore of completing P11Ds but in the meantime it’s business as usual unless the benefits are “made good”.
Benefits do not need to be reported on Form P11D if they are “made good”.
Kind regards,
Howard Gross BFP FCA FCCA CTA
Director
