Payrolling benefits must be put on a formal basis

From 6 April 2023, HMRC will no longer accept new informal payrolling benefits arrangements. Employers who have informal payrolling in place must register now to payroll expenses and benefits for 2023-24. If they already have an informal agreement with HMRC to payroll benefits for 2022-23 tax year they can continue to submit P11Ds marked ‘payrolled’ but this agreement should be formalised as soon as possible.

HMRC reminds employers who do not yet payroll benefits that the deadline for reporting any P11D expenses and benefits provided in 2022-23 is 6 July 2023. These must be reported online – HMRC will no longer accept paper P11D and P11D(b) forms, this includes lists.