Payrolling Benefits Informally Stops From Tax Year 2021-22

There are still some business that payroll benefits informally – they have not registered to use the online service, and have an agreement with HMRC to payroll informally.

From tax year 2021-22, this is no longer an option, and these people will now also required to register for payrolling benefits (prior to the start of 2021-22. Registration must be completed by 5 April 2021, at the very latest.

If employers decide to payroll benefits, employers still need to submit a P11D(b) to HMRC to allow them to pay any Class 1A National Insurance (NI) that they owe. The P11D(b) still needs to be filed by 6 July following the tax year it relates to, and payment of Class 1A NI is required by 19 July, or 22 July (where it is paid electronically).

The P11D Organiser can still be used to calculate the Class 1A and send the submission to HMRC electronically even when benefits are payrolled – just ensure the benefits are managed within the system!