Payrolling Benefits - Refund of Broadband Costs

I've recently become Treasurer of a charity and can't get my head round Payrolling Benefits, even though I have watched a recent HMRC webinar! Scenario - "employee" is actually a Minister of Religion, classed as an Office Holder who completes a Self Assessment Tax Return each year. He works from home. Already has broadband connection in his home. We've agreed to refund half the monthly fixed cost. I realize this is taxable, so added to payroll - therefore employee PAYE and employer & employee NI being paid. The only difference from his regular stipend is that the expense doesn't count towards his workplace pension. However, should I have registered this with HMRC before the start of the current tax year? If so, what should I do to rectify situation. And even if we did register with HMRC to payroll benefits what difference would that make - because, as far as I can see, all tax and NI is being accounted for monthly. It's not a notional Benefit in Kind cost (like, say, an employer paying for a gym membership) but an actual expense we are reimbursing (albeit one that is taxable). Are any forms required at the end of the tax year - P11d and P11d (b) have been mentioned.

Hi,

Reimbursements are not what is meant by payrolling benefits in kind. Reimbursements when taxable are generally added to the payroll as cash payments so are subject to tax and national insurance via the payroll.  Where as payrolling a benefit in kind is when something would normally be taxed via the P11D but instead you add a notional payment to the payroll to account for that tax. Your example is a reimbursement. As your reimbursement is essentially a cash payment this is not reportable on the P11D. 

Thank you.