Accountants for creative businesses

Payrolling Benefits

Tax, tax, tax. The bane of small business owners’ existence, and yes, there’s a tax on benefits too.

Certain benefits such as health insurance and retirement plans require complex taxation through P11Ds.

How we help

All this processing can be a pain.

The list of taxable benefits or ‘benefits in kind’ is rather long.

And there’s a lot of room for error.

P11Ds make you work out the cash equivalents to your benefits which are then deducted through payroll.

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So where do we come in?

We’re here to take the pain away. By letting us deal with the nitty-gritty, you can get back to doing what you love.

We’ll rid away of those pesky P11Ds!

Our service ensures that all your benefits in kind are processed without error.

This means your paid tax is up to date with no additional bills!

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Benefits in kind are non-salaried benefits provided to your employees. What makes benefits in kind complicated is the way they are taxed, as some benefits are taxable and others aren’t. Some examples of taxable benefits include company vehicles, private medical insurance, and childcare costs.

The reason benefits in kind are taxed is because even though they aren’t liquid cash (like your pay), they are still monetary incentives and must be taxed as such.

HMRC will calculate the tax on an employee’s benefits in kind through their P11D form.

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A P11D form is used by employers to report certain benefits (benefits in kind) and expenses they’ve provided to their employees during the tax year.

The purpose of the P11D form is to ensure that the value of these benefits is accurately reported to HMRC so that the appropriate tax can be calculated and collected from both the employer and the employee.

Speak to an expert

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Becky Dillon

Head of Payroll
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