Voluntary payrolling – HMRC call for volunteers

Apr 03, 2018

HMRC are carrying out a review of voluntary pay rolling of benefits in kind and expenses and are seeking volunteers to assist. 

“Review of voluntary pay rolling of benefits in kind and expenses 

Background  

In 2013 the Office for Tax Simplification reviewed how employee benefits and expenses were handled and produced a report with recommendations. 

In response to those recommendations, HMRC consulted on the real time collection of tax on benefits in kind and expenses through voluntary payrolling the outcome was an announcement in November 2014 stating that employers could sign up to voluntarily payroll through RTI from April 2016. 

This allowed an employer to opt out of pay rolling certain benefits through a P11D form and instead report the value of certain benefits in kind through Real Time Information (RTI). The benefits in kind affected were cars, car fuel, medical insurance and gym membership. This formalised arrangements that had already been in place for many employers. 

Current position

HMRC are now interested in gaining agents, employers and software developer views on the delivery and implementation of this policy to identify any lessons learnt or hear about anything we could have done differently. This will help us to consider how we can improve the delivery of future key policy objectives. 

There are no active plans to revisit or change this policy at the present time and this consultation exercise is different to the one that took place in 2014. This is an internal review to understand how the policy is operating, identify where there are obstacles and enable an easier process for agents and employers to payroll benefits in kind. 

Next steps

Once the review is complete the aim will be to consider the responses carefully before we promote the use of payrolling through RTI. 

Invite

We are seeking volunteers to participate in a 30 to 45 minute pre-arranged phone interview to answer some questions from: 

1. Companies who were already payrolling pre the changes

2. Companies who began payrolling in April 2016

3. Companies who do not currently payroll

4. Payrolling Software companies 

We aim to carry out the interviews from mid April onwards and we would welcome contact from volunteers back to: employmentincome.policy@hmrc.gsi.gov.uk.”

If you would like to express an interest in taking part, please contact us for more information.