Payrolling Benefits

Please can I have some information on how to set up a tech scheme benefit for the coming tax year with HMRC. We would like to payroll the benefit. What category would it fall under when making registering the payrolling of the benefit with HMRC? Could you point me in the direction of any HMRC guidance on this type of benefit please? Thank you.

Hi,
 

It depends on what you are doing if it’s an assets that you are buying and then giving to the Employee then its asset transferred – if you are giving them a voucher for the thing then its voucher (cash or non cash). If you are just paying the employees bill then its paying a personal bill – sees: Expenses and benefits: A to Z For Payrolling benefits you can tick all the one you think you are going to give to an employee that you want to payroll  . Thank you.

 

Thank you. The employee will receive a voucher to spend on technology so I assume it will be registered as 'Vouchers and credit cards'? Not all employees will avail of this benefit. I see there is a note that when the benefit is registered for the new payroll HMRC will make a change to employees tax codes. Could you explain this please as we would collect the tax on the benefit each month via the payroll (by adding to the taxable pay)?

Hi,
 

On the first part I can’t give advice on an assumption. - on the 2nd part it means that we will remove from next year’s tax code the BIK that were in them. This is the reason why we need people to reg for payrolling benefits before the tax year so we can remove the BIK info and reissue tax codes so that the employees are not paying the tax twice. Thank you.