Let Us Simplify Your Payroll Transition
Payrolling Benefits In Kind (PBIK)
What are Benefits In Kind?
The most popular are company cars and health care plans or health insurance. But many other things are considered Benefits In Kind. They are things that employers provide to employees that benefit them personally. Whether these ‘goods and services’ are provided free or at a ‘greatly reduced cost’, they are potentially covered.
Such benefits include loans (if market-rate interest is not charged), phones, gym memberships, and accommodation if used for non-work purposes. Also, some childcare vouchers or subsidies, and fuel for company cars used for personal journeys.
How we manage Benefits In Kind
When we set up your payroll, we ensure that we gain a full understanding of the pay and all forms of remuneration, reward, and benefits for all employees. That means we can help you administer and report these accurately.
Why payroll Benefits In Kind?
Will switching disrupt our payroll cycle?
This method is due to become mandatory in 2027, so why not get started at the next tax year if you haven’t done so already?
It removes entirely the need to complete a P11D form for each employee and frees up that date in the tax year. One less thing to remember.
Instead, the admin and the tax can be spread throughout the year, so you no longer get an extra tax bill for employee benefits.
Why outsource this as part of your payroll?
Not all benefits are taxable, but those that are must be properly declared to HMRC and the correct tax paid. It’s useful to have these consistently managed by specialists.
Moving from P11Ds to payrolling benefits means setting up completely new protocols in your payroll, so it may not be desirable if you have not done it before.
We’ll ensure you pay the right tax, no more than necessary, and don’t incur penalties.