Sarah Bradford explains what employers need to do if they provided taxable benefits and expenses to employees in the tax year 2024/25.
Providing taxable benefits-in-kind to employees comes with associated compliance burdens, requiring the employer to provide information both to HMRC and to employees.
Where benefits-in-kind are provided, there are various options available to the employer as to how to deal with them. The employer can payroll the benefit where they are registered to do so, they can report it to HMRC after the year end, or they can opt instead to meet the tax liability on the employee’s behalf by including it within a PAYE settlement agreement (PSA). The employer’s reporting obligations will depend on the route chosen.
Payrolled benefits
Where an employer opted to payroll taxable benefits and expenses in 2024/25, the employer would
