Informal payrolling of benefits stops from 2021-22 tax year
Employers who previously chose to informally payroll benefits will no longer be able to do so in the 2021-22 tax year. They will need to complete the registration with HMRC before the 5th April 2021 if they wish to proceed and formally payroll benefits as informal arrangements will no longer be accepted.
Employers who intend to payroll benefits and expenses must register them with HMRC using the ‘payrolling employees, taxable benefits and expenses’ service.
When using the online service for payrolling benefits and expenses, employers will not have to submit a form P11D. HMRC must be notified of which benefits you want to payroll during the registration process.
More information can be found on the HMRC webpage.