HMRC have launched a consultation Alignment of dates for ‘making good’ on benefits-in-kind.  This proposes a simpler set of deadlines for employees to make good the cost of benefits in kind (BIKs).

The consultation document highlights a number of problems with the existing rules:

  • For some BIKs there are a number of different dates in the legislation and HMRC guidance.
  • For some BIKs there are practical difficulties in complying with the dates in the legislation.
  • Where employers payroll BIKs another different set of dates applies.
  • Different dates can apply for tax and NIC purposes.

The government is proposing to make the system simpler by aligning the making good dates for payrolled and non-payrolled BIKs:

  • Making good should generally take place by the end of the tax-year.
  • For certain BIKs where there are practical difficulties (e.g. fuel benefit, credit tokens and beneficial loans) making good can take place up to 1 June following the tax year.

Comments are invited by 4 October 2016 with a further announcement expected to follow in the Autumn Statement.


Our subscriber guide: Voluntary payrolling of benefits

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