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Payrolling of benefits?

Payrolling of benefits?

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I am just wondering if this is something I should be looking into for 2016-17. I have heard that benefits can now be dealt with through payroll meaning, I guess, that an employee will have no liability at the end of the year. I understand that it is voluntary for 2016-17. Obviously doing it the existing way may result in a balance payable or repayable (for the employee) if their tax code reduction does not match the tax payable on their benefit. I have looked online at HMRC's guidance and while they state that an employer must register for this before 5th April 2016, they also say it is not recommended to register after 21st December as this may result in the issue of multiple tax codes. I can see some benefit in going the payroll route but I am not really sure if it is worth doing it for my clients in 16-17.

Anyone else? 

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By [email protected]
18th Jan 2016 09:48

Lack of interest?

I share your curiosity but from a totally different standpoint. It would be really interesting to know if many accountants will be adopting "PBIK" in 2016/17 .... or are accountants just too busy to even think about something that is voluntary for that first year?

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RLI
By lionofludesch
18th Jan 2016 09:55

No

Happy to let firms with more resources do the trials and find the snags.

Selfish, I know, but I spend enough time here dealing with existing snags.

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By Kazmc
18th Jan 2016 10:03

Agree.....

Agree with lionofludesch, I put numerous client payrolls into the RTI pilot and vowed to never get involved again in anything with HMRC until we absolutely had to!

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By SteveHa
18th Jan 2016 10:11

I have no intention of complicating my own  position by payrolling BIKs. Bear in mind an end of year return will still be required for CL1A purposes, so I'd rather just do P11D for the few employer clients we have that need them. At the same time, I simply start preparation of Tax Returns and punch the P11D details on, so it's all there when I do the Return proper.

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