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.
Links
Our subscriber guide: Voluntary payrolling of benefits
Consultation document: Alignment of dates for 'making good' on benefits-in-kind
