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.