Use the payrolling benefits and expenses online service to show you’re collecting tax on benefits and expenses through your payroll.
Online service
If you choose to payroll you can tell HMRC online. You need to register online before the start of the tax year you want to payroll for.
You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.
HMRC will make sure the value of the benefit is not included in your employees’ tax codes.
Register and use the payrolling benefits and expenses online service.
If you use the service you:
- will not need to use form P11D
- must still work out the Class 1A National Insurance contributions on benefits and complete form P11D(b)
You can exclude employees from payrolling once you’re registered, but you’ll need to use form P11D to declare the non-payrolled benefits.
Once the tax year has started you’ll have to payroll the benefits for the whole of the tax year, or until you stop providing them.
Before you start
Contact your accounting software provider to make sure your software can collect the correct tax due on the registered benefits directly from your employees’ pay.
If you use Basic PAYE Tools you can now use this service. You still need to register by 5 April.
To use this service you need a Government Gateway user ID and password to enrol for PAYE online.
Service availability
7am to 10pm, Monday to Friday
8am to 8pm, Saturday and Sunday
HMRC services may be slow during busy times. Check if there are any problems with this service.
Submitting electronic P11Ds
You will need to submit electronic P11Ds for any employees where you have provided additional benefits which have not been payrolled.
You can payroll all benefits apart from:
- living accommodation provided by you as an employer
- interest free and low interest (beneficial) loans
Further information
Find out more about payrolling: tax employees’ benefits and expenses through your payroll.
