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Failure to operate PAYE in situations where the employer reimburses a private expense to an employee or to account for Class 1 National Insurance through the payroll where a liability of the employee is met directly by the employer is commonplace.
Typically such oversights are identified post-5 April when the P11D exercise is undertaken.
The income tax position is readily rectified by reporting the item through a P11D but how are the Class 1 National Insurance contributions to be dealt with?
The payroll is closed the P35 has been submitted to HMRC and (presumably) any late amendment would be likely to incur a penalty of some sort or another.
Taking up the item in the current year payroll places it in the wrong tax year and could result in the incorrect sum of tax being paid and if National Insurance rates have changed an...
