Employer compliance – don’t miss filing deadlines for provisions of benefits-in-kind and shares

Date posted: 1st May 2024

Employers who have provided benefits-in-kind to employees, such as company cars, medical insurance, gym memberships or low interest/interest free loans to employees, in the tax year to 5 April 2024, need to report the “cash equivalent” of such benefits to HMRC by 6 July 2024. This is done via the completion of forms P11D.

Even if the benefits-in-kind have been declared via the payroll, a declaration on form P11D(b) is still required to declare the employer’s class 1A national insurance charge to HMRC.

If the conditions are appropriate, it may be possible to agree a PAYE settlement with HMRC (whereby the employer pays the associated tax for the employee on the benefits) but this will need to be agreed with HMRC, by 5 July 2024.

Similarly, if an employee has received shares as a result of their employment, a separate report is required to be made to HMRC by 6 July 2024. This could be the case if the employing company has provided new shares to an employee as a reward or if a current shareholder has transferred some shares to the employee, as a reward.

Given the short time frame between the end of the tax year and the above dates, it is imperative that as an employer, you understand your obligations.

As ever, if you need advice or support with these filing obligations, please give us a call.


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