By now, you should have given all your employees a copy of their 2024 P60s.
There are still a handful of additional payroll obligations for 2023/24 to comply with …
PAYE Settlement Agreements
If you’ve not agreed your 2023-24 PAYE settlement agreement on employee benefits with HMRC yet, you have until 5 July 2024 to action this.
P11D Forms
P11D forms are used to report expenses and benefits in kind provided to employees and directors. For 2023/24, they need to be submitted electronically to HMRC via PAYE Online for employers (or your commercial software) by 6 July 2024.
It is worth noting that:
- Reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties.
- Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place to ensure that the expenses qualify.
- Trivial benefits of no more than £50 provided to employees need not be reported. This typically covers non-cash gifts to employees at Christmas, on their birthdays etc. and can include gifts of food and alcohol. The employer must keep a record of the benefit provided and the justification, it should not be provided as a reward for past or future service.
Unless an employee fully reimburses the employer for all private mileage fuel carried out in a company car, there is an additional ‘fuel’ benefit in kind which is reportable on the P11D form. This is an ‘all or nothing’ benefit in kind which can be especially expensive for both the employee and employer.
For instance, the ‘fuel’ benefit in kind is calculated using a notional list price of £27,800, multiplied by the CO2 For example, the ‘fuel’ benefit in kind is calculated by taking a notional list price of £27,800 and multiplying it by the vehicle’s CO2 emissions percentage (up to 37%), resulting in £10,286. A 40% taxpayer would incur an income tax bill of £4,114. Additionally, the employer would be responsible for £1,419 in Class 1A National Insurance.
Employer related-securities returns
The deadline for reporting shares, securities and share options issued to employees in 2023/24 is 6 July 2024.
Employers must submit their employment related securities annual returns online and attach the appropriate spreadsheet template if they have something to report. HMRC provide templates on their website that may be downloaded. Note, there are different templates for each of the four tax-advantaged employee share schemes – Company Share Option Plan (CSOP), Enterprise Management Incentives (EMI), Save and You Earn (SAYE) share options and Share Incentive Plans (SIP). In addition, employers must report any other employment-related securities (non-tax-advantaged) issued to employees and directors.
It’s all change from April 2026!
In January 2024 the government announced its intention to make the payrolling of benefits compulsory. This means that, from April 2026, all payrolled benefits will need to be included in the Full Payment Submission and sent to HMRC on/before each pay day.
