From 6 April 2016, with the exception of ministers of religion, the £8,500 threshold is to be abolished. This means that from this date employees earnings at a rate of less than £8,500 will be taxed on their benefits in kind (BiKS) in the same way as employees earnings at a rate of £8,500 or more. Unless you have opted to payroll your BiKs from 6 April 2016, if you have employees who are earning at a rate of less than £8,500, who have BiKs that you do not currently report, you will need to tell HMRC the names and National Insurance Numbers of these employees. You also need to state the type and the taxable amount of each BiK that you make available to each of these employees as soon as possible. This will allow HMRC to include the taxable amounts of these BiKs in tax codes for these employees for the tax year beginning 6 April 2016 and avoid an underpayment of tax building up during the year.
The information should be provided in paper format please and send to;
PAYE & SA
From the 2016 to 2017 tax year onwards if you have any employees who receive BiKs that are not ‘payrolled’ you will need to report these on form P11D and pay any Class 1A that is due in the usual way.
If you would like any advice on this matter please call Sue Stephens.