Benefits In Kind are a minefield and easy pickings for HMRC

May 22, 2023

After the end of the tax year, employers need to provide certain information to employees and to HMRC as regards both pay and deductions and taxable expenses and benefits.

Key dates

Employees must be given their P60 for 2022/23 by 31 May 2023. They must also be notified of any payrolled benefits by 1 June 2023. Forms P11D and P11D(b) for 2022/23 must be filed by 6 July 2023. Employees must be given a copy of their P11D or details of their taxable benefits and expenses by the same date.

We explain the nature of the reporting obligations.

Certificate of pay and tax deducted (P60)

Employers must provide all employees who were on the payroll on 5 April 2023 with a P60 by 31 May 2023. This is a certificate which shows the employer’s pay and deductions in the 2022/23 tax year. More specifically, it contains details of pay and tax deducted for any previous employment in the tax year, the current employment and the total for the tax year. It also shows the National Insurance paid by the employee, any statutory payments received, and any student loan or post-graduate loan repayments deducted from their pay.

The P60 will usually be generated by your payroll software package. You can provide the employee with their P60 electronically or in paper format.

If the employee left before 5 April 2023, you do not need to give them a P60. Details of their pay and tax deducted are shown on the P45 given to the employee when they left.

Payrolled benefits

If you payrolled benefits provided to employees during the 2022/23 tax year, you must provide each employee with details of their payrolled benefits for the 2022/23 tax year by 1 June 2023. You must include the taxable amount of the benefit. You can provide this information by email, by letter or on a payslip.

Form P11D

Details of taxable benefits and expenses provided to employees in the 2022/23 tax year which have not been payrolled must be reported to HMRC on Form P11D by 6 July 2023. You must give the employee a copy of their P11D or details of the information it contains by the same date.

HMRC are not accepting paper P11Ds for 2022/23. This means you must file your P11Ds online. If you have 500 or fewer P11Ds to file you can use either HMRC’s PAYE Online Service or a commercial software package. If you need to file more than 500 P11Ds, you must use a commercial software package.

Form P11D(b)

Form P11D(b) is your declaration that all required P11Ds have been filed and also your Class 1A National Insurance return. You must file your P11D(b) by 6 July 2023, using either PAYE Online or commercial software.

You will need to file a P11D(b) even if you have no P11Ds to submit because you payrolled all taxable benefits and expenses provided to employees in 2022/23.

Please call if you need help with any of the issues raised in this alert.