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
Links
Alignment of dates for 'making good' on benefits-in-kind
Loving our content? 😍
Join thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.
Register with us now (for free 😅) to receive our receive our FREE weekly SME Tax News updates.
