If you’re intending to payroll benefits and expenses, you must register for the service before the start of the tax year
What benefits can you payroll?
You can payroll all benefits except:
employer provided living accommodation
interest free and low interest (beneficial) loans
Any benefits that have not been payrolled must be reported on a P11D
Advising your employees
Once you’ve registered to payroll benefits, you must notify your employees that you’re payrolling benefits. You must also give your employees the following information before 1st June after the end of each tax year:
details of the benefits you've payrolled, for example, car fuel
the cash equivalent of each benefit you’ve payrolled
the relevant amount you’ve payrolled for optional remuneration
details of benefits you haven’t payrolled
It should be clear to the employees:
what benefits have been subject to PAYE tax
how much of the value of each benefit you’ve collected and reported tax on
What happens if you miss the deadline?
Unfortunately if you miss the deadline to register for payrolling benefits you will not be able to payroll any benefits until the following tax year and you will still be required to complete a P11D at the end of the tax year.