The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
Planning to payroll Benefits in Kind in 2017? 24 August 2016
If you are planning to take up voluntary payrolling of Benefits in Kind (BiKs) you can register now.
You can register anytime between now and 5 April 2017, however HMRC advises employers to register before the annual tax coding process begins, which is usually around 21 December to avoid being sent multiple tax codes for employees with payrolled benefits. All employers who wish to use the statutory framework for payrolling benefits in real time must register with HMRC and this includes employers who currently have ad hoc payrolling arrangements with HMRC and wish to continue under the new framework.
Employers just use their Government Gateway ID to login and register their payrolling requirements. Agents cannot use PBIK registration service but HMRC does plan to develop the Agents Service later.
The benefits that the employer selects must be payrolled for all the employees that are covered by payrolling that receive the same benefit. Any benefits that the employer does not select but does provide must be reported on a P11D.
The employer’s section of benefits applies for the whole tax year although, if an employer starts providing a benefit for the first time during a tax year, this can be added.
Employers will also be able to return to the registration service to revise the selection of benefits if an error was made in the original application.
The selection of benefits can be changed before the start of the next tax year to apply to the following tax year. If the selection is not altered, it is carried forward automatically.
Go to GOV.UK for full guidance and the link to register .
Advisory Fuel Rates for Company Cars from 1 September 2016 26 August 2016
HMRC has issued details of the latest Advisory Fuel Rates for Company Cars.
For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.
The new rates are below (previous rate in brackets where there is a change):
Engine size
Petrol
LPG
1400cc or less
11p (10p)
7p
1401cc to 2000cc
13p
9p
Over 2000cc
20p
13p
Engine size
Diesel
1600cc or less
9p
1601cc to 2000cc
11p (10p)
Over 2000cc 13p (12p) Hybrid cars are treated as either petrol or diesel cars for this purpose.
Follow this link for details on how the rates are calculated
cipp.org.uk
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