Online service

As an employer, if you choose to tax employees’ benefits and expenses through your payroll you can tell HMRC online.

If you are an agent, you can use the PAYE for agents online service to payroll benefits in kind online.

You need to register online before the start of the tax year you want to payroll for.

You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.

HMRC will make sure the value of the benefit is not included in your employees’ tax codes.

If you use the service you:

• will not need to use form P11D
• must still work out the Class 1A National Insurance contributions on benefits and complete form P11D(b)

You can exclude employees from payrolling once you’re registered, but you’ll need to use form P11D to declare the non-payrolled benefits.

Once the tax year has started you’ll have to payroll the benefits for the whole of the tax year, or until you stop providing them.

Before you start

If you use Basic PAYE Tools you can use this service. You still need to register by 5 April.

To use this service you need a Government Gateway user ID and password to enrol for PAYE online.

Service availability

7am to 10pm, Monday to Friday
8am to 8pm, Saturday and Sunday

HMRC services may be slow during busy times.

Check if there are any problems with this service.

Submitting electronic P11Ds

You will need to submit electronic P11Ds for any employees where you have provided additional benefits which have not been payrolled.

You can payroll all benefits apart from:

• living accommodation provided by you as an employer
• interest free and low interest (beneficial) loans