With less than six months to go before new PAYE legislation comes into force employers need to act swiftly to make sure they comply, warns WBV Ltd.
Employers who intend to or are already payrolling benefits and expenses must register with HMRC using the new online Payrolling Benefits in Kind (PBIK) service.
The new rules regarding PAYE will come into force from April 5th 2016, and so independent chartered accountants WBV is urging clients to take action now.
In addition, from next April, employers who use the service and already payroll benefits and expenses won’t have to report them on a P11D.
Employers must align their payroll software and register to payroll using the new service by April 5th 2016. They will not be able to register after this date for the 2016/2017 tax year as HMRC is unable to process changes in-year.
HMRC adds that all payroll benefits and expenses need to be included when employers report their payroll information in a Full Payment Submission (FPS).
Also, P11D (b) forms must still be completed, including the total benefits and expenses provided, whether or not they have been put through the payroll.
However, if employers payroll car and fuel benefits, they must not complete P46 (Car) forms as they are deducting the tax at source that is due on these benefits.
Says Richard Chapple, director at Neath and Swansea based WBV, “All of these changes coming in from next April can be very confusing for an SME owner and so I would suggest that if you’re unsure about payroll changes, you seek professional advice.
“We can handle your payroll duties so that it is one less thing for you to worry about. Let PBIK be our headache, not yours!”
NOTES TO EDITORS
For more information please contact:
Tel: 01639 635555
The Third Floor
SA1 Swansea Waterfront
Tel: 01639 635555
WBV Ltd is a member of the prestigious UK200 Group of independent practicing chartered accountants with offices throughout the UK and associates overseas.