HMRC previously announced that the new mandatory payrolling of benefits would be effective from 6 April 2026.  This has now been postponed to 6 April 2027.

From 6 April 2027, employers will be required to include all taxable benefits in kind (currently excluding employer-provided living accommodation and beneficial loans) in their employees’ payroll, so that the tax is collected in real-time, via PAYE.
 

Even with competitive pay and perks, employees may still feel disengaged. Moore member firm Johnston Carmichael shows how clearly communicating your Employee Value Proposition can boost satisfaction and motivation.

There are a number of government approved share schemes which offer tax advantages to employees. The approved schemes are Share Incentive Plans (SIPs), Save As You Earn (SAYE) schemes, Company Share Option Plans (CSOPs) and Enterprise Management Incentive (EMI) schemes.

Business owners who are minded to celebrate the forthcoming Christmas break with their staff are reminded that there is a tax-free allowance for the provision of an annual party or other event for the benefit of staff and their partners. The present limit to tax relief is £150 per head. If this amount is exceeded, the full cost of the benefit is taxable not the excess over £150.
 

The advisory fuel rates are changing from the 1st March 2019.

The advisory fuel rates are changing from the 1st March 2019.

A reminder that if your business makes a loan to your employees or their relatives this can create tax problems for both employees and employers.

And please don’t forget that the term “employee” includes directors, and also that loans to family members may be caught. 
 

The advisory fuel rates are changing from the 1^st March 2019.

These rates apply to employees who claim back fuel expenses when using a company car.

The previous rates can be used for up to 1 month from the date the new rates apply.

With P11D submissions for employees due at the beginning of July, now is a good time to take stock of the benefits you provide to your workforce and evaluate if there are more tax efficient options available.  It’s also worth reviewing whether there are more potentially appealing benefits you could be providing that could help you to attract, remunerate and retain staff. 

In this article we look at a selection of employee benefits that are exempt from tax. Whilst this list is not exhaustive, each is worth considering to see if it would be a positive step forward in the tax position of both the employee and the business itself.
 

There is now a voluntary facility for employers to put benefits and expenses through their payroll without having to submit a form P11D after the end of the tax year. If you intend to do so for the 2017/18 tax year, you must register with HMRC before 5 April 2017.