Reporting Benefits in Kind to HMRC

Reporting Benefits in Kind to HMRC

If you make available benefits in kind or settle an employee’s personal costs, you will need to make a report to HMRC on forms P11D by 6 July.  Typical benefits in kind include private medical insurance, company cars and interest free loans.  There are also new rules affecting optional remuneration arrangements, including salary sacrifice schemes and flexible benefit schemes, which must be considered.

Class 1A national insurance is payable on the value of most benefits in kind and must be settled by 19 July and if forms are late, a penalty will be charged.

It is now possible to apply for most benefits in kind to be processed via the payroll, although a summary form P11D(b) will still need to be completed and submitted to HMRC.

If you would like to learn more about reporting benefits in kind or applying to payroll benefits, please do not hesitate to contact Lauren Pigeon: lauren.pigeon@kilsbywilliams.com