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Simplifications to payroll and benefits

29 January 2024 / Alastair Kendrick
Issue: 4922 / Categories: Comment & Analysis , benefits in kind , payroll , Admin
156211
No more P11Ds

Key points

  • The government is planning an online service for employees to claim tax relief on all of their expenses in one place.
  • Payrolling of benefits will be mandatory from April 2026.
  • It is not clear whether payrolling will apply to all benefits.
  • Employers will still have to account for the class 1A National Insurance arising on the benefits by completing the end of year P11D(b).

The government announced on the 16 January 2024 changes to remove some of the complexities of the tax system (tinyurl.com/hmrctaxsimpjan). Contained within this announcement are two areas which impact on those who are involved in employment tax matters.

Non-reimbursed expenses

HMRC plans to develop an online tool which will enable employees to claim the reimbursement of the tax relief on expenses in one place. HMRC states it has to deal with 1.1 million claims a year and people file them in a...

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