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Payrolling Benefits in Kind

  • Member PM.Dip
  • Practice Licence
  • 24 posts
  • # 114727

I have a client who offers BUPA to his Area Manager.

Currently this is reported on the P11d and his tax code is amended in arrears - ie the tax year AFTER he has received the benefit.

If we sign up for Payrolling the Benefit in April 17, they will adjust his tax code immediatley.

But I still need to complete a P11d for the 16-17 period he received BUPA.

So am I right in thinking that during 2017-2018 this will mean he pays tax on TWO years Benefits - the 17-18 AND the 16-17?

 

  • Member PM.Dip
  • Practice Licence
  • 157 posts
  • # 114737

goldaccounting said:

I have a client who offers BUPA to his Area Manager.

Currently this is reported on the P11d and his tax code is amended in arrears - ie the tax year AFTER he has received the benefit.

If we sign up for Payrolling the Benefit in April 17, they will adjust his tax code immediatley.

But I still need to complete a P11d for the 16-17 period he received BUPA.

So am I right in thinking that during 2017-2018 this will mean he pays tax on TWO years Benefits - the 17-18 AND the 16-17?

 


Yep if the benefit is paid through the Tax Code, he/she will have a "double whammy", but then they have already had the benefit for previous year and that has to be paid at some time. Or they could make a lump sum payment for previous year to hmrc.

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