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P11D - Benefit value

Company purchased vouchers as part of a benefit scheme

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Hello

I am just after a bit of advice re P11D's please.

Company purchased vouchers for employees as part of a benefit scheme.  Employees got vouchers based on % of  their salary but the Company got a discount due to bulk purchase.

Do I put the value of the vouchers or the cost to the company?  The discount is small but I want to get it right.

Thanks for your help.

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By RetiredTax
19th May 2017 16:17

Most BIK's, apart from scale charges, are based on the cost to the employer & I would think this applies here.
I hope this helps

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By tonycourt
19th May 2017 21:45

I agree with the previous post - there are no special valuation rules for non-cash vouchers, therefore cost to the employer is the correct way to approach it.

Note however that HMRC's view is that class 1 NI (not class 1A) should be accounted for at the time the vouchers are provided unless the goods or services tthe voucher can be exchanged for would be exempt, e.g. childcare vouchers.

I am not convinced HMRC are correct. Other respondents might be able to be able to provide a more definitive view.

You can see HMRC's take on the NI treatment of vouchers for different types of goods and services at https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-an...

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