NI on perks

All employers should now have submitted their benefits and expenses Forms P11D and corresponding annual declarations Form P11D(b) for 2015/16. The deadline for both documents was 6 July 2016. However, there’s another related deadline approaching.

 

Class 1A

As an employer you’re liable to pay Class 1A NI at 13.8% on the value of most benefits in kind reported onForms P11D . Payment of Class 1A for 2015/16 must clear into HMRC’s bank account by 22 July 2016 to avoid interest and penalties. HMRC advises that if you’re paying by cheque it must reach it by 19 July.

Tip: When sending your payment of Class 1A NI, whether by cheque, bank or Internet transfer, you should use your usual 13-digit HMRC Accounts Office tax reference and add 1613 at the end. For example, if your reference is 123PA00123456, you would use 123PA001234561613 without spacing between the digits.

You must pay Class 1A NI due on benefits in kind provided to your employees in 2015/16 by 22 July 2016. The money must clear into HMRC’s bank no later than that date. Whatever method of payment you use, include your normal tax reference plus the digits 1613 at the end.

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