Tax agents and payrolling benefits in kind

I would like to payroll a BIK for an employer but it seems that as agent I can't?

Didn't find your answer?

Am I correct in my thinking that an agent cannot payroll a BIK, the employer has to register for online services etc to apply? I have tried as agent but it won't let me, am I missing something?

Replies (3)

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By janelm
18th Mar 2024 16:54

I just discovered this last week, thinking I might finally bite the bullet and payroll a couple of benefits, though to be honest P11ds seem easier (I only have company payrolls with 1-2 directors, only three of which have simple private health/electric vehicles). Couldn't believe that the client has to be set up with their own Gateway, AND have PAYE services added (one just requested an activation code today, but that takes a while to be posted), AND then go through a whole registration process (questions unknown, so probably more hurdles ahead). So we'll probably miss the 5th April deadline for trying this out for 2024/25. So much for being able to offer a complete service to our clients to deal with headaches for them.
Amazing how many obstacles HMRC put in the way, while at the same time making this mandatory from April 2026.

Thanks (2)
By FactChecker
18th Mar 2024 19:50

"I would like to payroll a BIK for an employer but it seems that as agent I can't?" is not the correct conclusion (to two separate issues you are raising).

1. Plans are underway to make Payrolling of BiKs (with a couple of exceptions) mandatory - by withdrawing the option to report via a P11D - but as always there's a gap between the espoused intention and the details to be enforced.
However HMRC have confirmed that, as at this moment in time, they will not remove the requirement for an Employer to register for this 'service' before the start of the first Tax Year in which it will be operated. [A chance spurned, but it is HMRC.]

2. But once registration (by the Employer) is in place, there is absolutely nothing to stop anyone who processes the Payroll from including BiKs within the PAYE calcs (and the FPS filing) ... so certainly an Agent can do all that.
[Note: in another blinding decision of incompetence by HMRC, although you will then be reporting the Class 1A values ... you cannot/must not pay them within the monthly payment to HMRC - this amount must still be sent after Y-E with a P11D(b)!]

There are several other 'idiosyncrasies' regarding the current state of payrolling BiKs, but then HMRC have only had the best part of a decade to sort it all out ... so don't hold your breath whilst waiting for clarity.

Thanks (4)
By FactChecker
21st Mar 2024 13:00

UPDATE (per today's HMRC Agent Update bulletin):

* "agents will be able to register to payroll benefits in kind from April 2024, (which means) the 2025-26 tax year will be the first year for which you will then be able to payroll benefits in kind"

* "the payrolling of benefits in kind (BiKs) will be mandated from April 2026"

* "The 2025-26 tax year will be the last year that we will accept P11Ds and P11D(b)s for annual reporting of BiKs in most cases"

* "HMRC is engaging with stakeholders to discuss our proposals to inform design and delivery decisions. Draft legislation will be published later in the year as part of the usual tax legislation process. HMRC will also work with industry experts to produce guidance, which will be made available in advance of 2026."

So confirmation of what I said was in the wind (and that as yet, no surprise, there's not much useful detail)!

Thanks (3)