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HMRC’s guidance on payrolling

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Payrolling staff benefits for 2024/25 now open

Payrolling registration. HMRC has opened its registration window for employers who wish to start payrolling employee benefits in kind and taxable expenses for 2024/25. Registration must be done online (see The next step ). Employers that registered for payrolling for 2023/24 or earlier do not need to reregister as a registration continues until the employer cancels it.

Consequences of payrolling. Payrolling requires you to work out the taxable amount of a benefit at the start of the tax year (if necessary, you can amend the figure during the tax year) and include a corresponding adjustment to the PAYE tax payable by your employees each time you pay them.

Tip. If you go ahead with payrolling you should tell the employees affected. They’ll need to know because it will result in HMRC amending their PAYE tax codes.

For a link to HMRC’s guidance on payrolling, visit https://www.tips-and-advice.co.uk , Download Zone, year 24 issue 7.