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 National Insurance Contributions (NICs) 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.

Useful guides on this topic

Voluntary payrolling of benefits


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


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter.