Payrolling of Benefits (BiK)
 
Payrolling of Benefits (BiK)
HMRC has now made payrolling of benefits mandatory, replacing the traditional year-end P11D reporting for most benefits. As a result, all Benefits in Kind (previously reported on P11D) must now be included in payroll processing and reported through RTI FPS.
 
What this means for you
Before processing payroll and updating Year-to-Date (YTD) figures, you must:
  • Enter all applicable P11D / Benefit-in-Kind details for employees.
  • Ensure benefit values are complete and up to date for the relevant pay period.

These benefit values will then be:
  • Included in PAYE tax calculations
  • Reflected correctly in YTD figures
  • Reported to HMRC through FPS submissions
Failure to enter benefit details before payroll processing may result in incorrect tax calculations and non-compliant HMRC submissions.
 
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