Payrolling Benefits in Kind & Class 1a NI

05/10/2017 08:47:54
We are thinking of switching to payrolling all our benefits in kind. From the guidance it says you will still have to fill in a P11d(b) from. There is no mention about how this affects the way the tax is collected. Is the class 1A paid monthly through additional employer NI or annually as currently?

Re:Payrolling Benefits in Kind & Class 1a NI

05/10/2017 10:11:23
Hi William

You still need to send a form P11D(b) in each year. The p11D(b) tells us how much Class 1A National Insurance you owe on the cash equivalent of the benefits. You don’t pay Class 1A through payrolling because that’s the employers bill, not the employees bill. The P11d(b) includes Class 1A on both payrolled and non-payrolled benefits

The Class 1A payment date hasn’t changed . You need to pay by 22nd July each year for the previous tax year and by 19th July if paying by post.

Kind regards