HMRC have published a response to their consultation earlier this year: ‘Alignment of dates for ‘making good’ on benefits-in-kind.

The original consultation highlighted a number of problems with existing rules including different deadlines applying for different benefits and for tax and NIC purposes.

In its response, HMRC confirms that:

  • There will be a uniform date for making good.
  • The date will be 6 July following the end of the tax year.
  • Existing provisions for late paid interest on beneficial loans will be retained.  An employee can claim that a benefit-in-kind which has become final should be recalculated to take a late interest payment into account.
  • The NIC liability for non-cash vouchers and credit tokens will not be moved from Class 1 to Class 1A.

Draft legislation was published on 5 December 2016 for inclusion in Finance Bill 2017.

Links

Our subscriber guide: Voluntary payrolling of benefits

Consultation documents: Alignment of dates for 'making good' on benefits-in-kind