Date posted: 14th Apr 2025
The end of the 2024/25 tax year means that many employers will be submitting various compliance forms to HMRC in the coming months.
The routine payroll submissions will be being made to HMRC but it is important for employers to ensure that they also report:
- The provision of any benefits in kind unless these are “payrolled” such as private medical insurance, company cars, gym memberships etc.
Even if the benefits are payrolled, the employer will still need to complete an end of year form P11D(b) to declare the employer’s national insurance payable.
- The issue, transfer etc of any shares to employees either via approved share schemes (EMI) or simply share transfers/issues by the company/shareholders direct.
These reports will need to be submitted to HMRC by 6 July 2025.
Of course, it will be mandatory to payroll benefits from 6 April 2026 as we have mentioned previously (https://www.cliveowen.com/2024/12/mandatory-payrolling-of-benefits-it-is-just-over-a-year-away/) so the 2025/26 P11D compliance cycle, will be the last, barring those employers with employment related/directors loans and living accommodation benefits.
Considerations also need to be given to:
- Reporting “trivial” benefits in kind – whilst there is an exemption for benefits below £50, this relies on the benefit not being in recognition of part of the employee’s duties and is often overlooked – https://www.cliveowen.com/2024/07/trivial-benefits-they-arent-taxable-are-they/
- Requesting a PAYE settlement agreement with HMRC for such trivial benefits or perhaps entertaining that has exceeded the annual limits https://www.cliveowen.com/2023/05/entertaining-are-there-any-tax-reliefs/
If you have any queries on the above or employment taxes in general, please give us a call.
