GLOBAL PAYROLL MAGAZINE
35
ly
under the existing P11D procedure. If an employer decides to payroll car and car fuel benefits, information detailed on the P46 (Car) must be reported on the FPS. All payrolled BiK need to be included on the Full Payment Submission (FPS), which is sent to HMRC on or before each payday. There are special rules: if the 50% regulatory limit applies, also known as the ‘overriding limit’ in the legislation, which stipulates
that an employee cannot have a tax deduction greater than 50% of their taxable pay in that pay period, and when an employee leaves. As these potentially involve reverting to a P11D, this rule may change in future. What if any employee makes good in full or part a BiK? Some employees may make a payment towards the cost of a BiK, known as ‘making good’, such as net pay benefits. When this occurs, it reduces the cash
Made with FlippingBook - Online magazine maker