Thomas Coombs is reminding clients that PAYE legislation is changing from 5 April 2016, so employers who intend to or are already payrolling benefits and expenses must register with HMRC using the new online Payrolling Benefits in Kind (PBIK) service. In addition, from next April, employers who use the service and already payroll benefits and expenses won’t have to report them on a P11D.

Employers must align their payroll software and register to payroll using the new service by 5 April 2016. They will not be able to register after this date for the 2016/2017 tax year as HMRC is unable to process changes in-year.

HMRC adds that all payroll benefits and expenses need to be included when employers report their payroll information in a Full Payment Submission (FPS). In addition, P11D (b) forms must still be completed, including the total benefits and expenses provided, whether or not they have been put through the payroll. However, if employers payroll car and fuel benefits, they must not complete P46 (Car) forms as they are deducting the tax at source that is due on these benefits.

Christopher Darwin, Partner at Thomas Coombs said: “All of these changes coming in from next April can be very confusing for an SME owner and so I would suggest that if you’re unsure about payroll changes, you seek professional advice. At Thomas Coombs, we can handle your payroll duties so that it is one less thing for you to worry about. Let PBIK be our headache, not yours!”

For more information please contact Christopher Darwin.

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