In payroll benefits (Payrolling Benefits)

Payrolling Benefits in Kind (PBiK) is an alternative to reporting benefits on a P11D at the end of the year.

When recording a benefit, set the Declaration Type to PAYE PAYE or Pay as you earn is an HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment..

Whenever you pay the employee, an additional line will appear on the on-screen payslip A statement provided by an employer to an employee, detailing their wages, deductions, and net pay for a specific pay period.This is a legal requirement under the employment rights act and should be received on or before the pay date. showing the value of the benefit.

The benefit increases taxable pay only; it also does not display on the payslip pdf.

Good to know...

• You must register with HMRC before you start using in payroll benefits. External website

• You can only start using in payroll benefits from the start of the next tax year.

• You must give your employees written notification explaining that you’re using in payroll benefits. External website

• The following can't be recorded using in payroll benefit:

  • Employer provided living accommodation.

  • Interest free and low interest (beneficial) loans.

• HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. Guidance: Payrolling: tax employees' benefits and expenses through your payroll. External website