As an employer, when you give employees a benefit in kind, you can decide whether you want to perform one of the following options:
- Payroll the benefit: This allows you to display the tax charged for the relevant period on the payslip.
- Submit annual P11D for Individual Employees and Whole Pay Schemes: This means not payrolling the benefit but submit the information on the P11D at the end of the year.
How do I payroll the benefit in kind?
- Create the addition heading specific to the Other Payrolled Benefits. For more information, see How Do I Set Up Other Payrolled Benefit Addition Headings?
- Assign the the benefit in kind to the employee. For more information, see How Do I Assign Other Payrolled Benefits to Employees?
- Display the taxable amount on the employee's payslip. For more information, see How Do I Display the Other Payrolled Benefit Taxable Amount on Payslips?