Harley Haughton

Hi, I am seeking clarification on how to deal with a scenario in which an employee receives a benefit during a tax year after the first pay period. Typical HMRC guidance, as I understand, is to divide the cash equivalent by the number of pay periods in the tax year, and payroll that amount each period for the employee to pay tax on. However, this does not account for the situation in which a taxable benefit is received mid way through the year by an employee and without the employer having knowledge in advance that this would happen. It this scenario at least 1 pay period will already have passed without the benefit being payrolled. The options I am considering are: - Divide the cash equivalent by the number of remaining pay periods, and payroll this amount each pay period. This way the tax is fully paid within the same tax year the benefit was taken. - Divide the cash equivalent by the total number of pay periods, and payroll this amount each period into the next tax year. This way the tax is fully paid within a year of the employee receiving the benefit, but not fully repaid within the same tax year. I cannot find any guidance on this online as all examples assume the benefit is taken for the entire tax year.