Since 06 April 2016, employers have been able to voluntarily “payroll” benefits. This is a way of avoiding the P11D completion exercise at the end of the tax year and simply means that the taxable benefit is put through the payroll rather than declared on the P11D. It applies to all benefits with the exception of:
- Employer provided living accommodation
- Interest free and low interest (beneficial) loans
At the Employment and Payroll Group (EPG) meeting on the 28th of March 2019, HMRC gave a presentation that looked at the “barriers” to payrolling and whether these were limiting the uptake of this voluntary option. For example, they asked whether the process was too complicated or whether the guidance was unclear. They also asked that if the process was to be made mandatory, what the impacts would be on employers and what adjustments employers would have to make (in terms of administration and processes).
HMRC have now released a survey for all payroll professionals in order to gather views. This is for professionals and employers who payroll benefits already and those who do not.
Global Payroll Association Comment
We have a number of members that do payroll their benefits but a greater number that do not and HMRC recognise that situation amongst all employers. So this survey is will be a really useful indicator for them as to what the positive features are and what the barriers to greater take-up may be.
We recognise that there are a lot of employers and business that rely on P11D processing as one of their income streams. So even the mention of making payrolling mandatory should be a wake-up call for them. If payrolling was to be mandatory at some time in the future, how would businesses replace this income stream?
We really recommend that all payroll professionals take time to give their views on the 10 questions that HMRC asks in this simple survey. HMRC have asked us the question and it is up to us to feed them our views.
Note that it is not just for professional bodies, it is for anyone and we are pleased that HMRC is engaging with the whole profession.
Since 06 April 2016, employers have been able to voluntarily “payroll” benefits. This is a way of avoiding the P11D completion exercise at the end of the tax year and simply means that the taxable benefit is put through the payroll rather than declared on the P11D. It applies to all benefits with the exception of:
- Employer provided living accommodation
- Interest free and low interest (beneficial) loans
At the Employment and Payroll Group (EPG) meeting on the 28th of March 2019, HMRC gave a presentation that looked at the “barriers” to payrolling and whether these were limiting the uptake of this voluntary option. For example, they asked whether the process was too complicated or whether the guidance was unclear. They also asked that if the process was to be made mandatory, what the impacts would be on employers and what adjustments employers would have to make (in terms of administration and processes).
HMRC have now released a survey for all payroll professionals in order to gather views. This is for professionals and employers who payroll benefits already and those who do not.
Global Payroll Association Comment
We have a number of members that do payroll their benefits but a greater number that do not and HMRC recognise that situation amongst all employers. So this survey is will be a really useful indicator for them as to what the positive features are and what the barriers to greater take-up may be.
We recognise that there are a lot of employers and business that rely on P11D processing as one of their income streams. So even the mention of making payrolling mandatory should be a wake-up call for them. If payrolling was to be mandatory at some time in the future, how would businesses replace this income stream?
We really recommend that all payroll professionals take time to give their views on the 10 questions that HMRC asks in this simple survey. HMRC have asked us the question and it is up to us to feed them our views.
Note that it is not just for professional bodies, it is for anyone and we are pleased that HMRC is engaging with the whole profession.