Consultation outcome

Alignment of dates for ‘making good’ on benefits-in-kind

This consultation has concluded

Download the full outcome

Detail of outcome

The government response sets out that the date for making good on benefits-in-kind which are not accounted for in real time through Pay As You Earn (‘payrolled’) should be 6 July following the end of the tax year. This brings greater clarity to the rules and helps employers and employees understand their obligations.

The change in the rules will be included in Finance Bill 2017, with a view to bringing the change into effect from tax year 2017 to 2018. The government is consulting on the draft legislation intended to give effect to the change.

Original consultation

This consultation ran from to


A consultation on proposals to align the dates by which an employee has to ‘make good’ the cost of their benefit-in-kind.


Consultation description

The government announced at Budget 2016 that the government would consult on proposals to align the dates by which an employee has to make a payment to their employer in return for a benefit-in-kind they receive, in order to ‘make good’.

The consultation explores the scope for aligning the ‘making good’ rules for benefits-in-kind with those which apply to ‘making good’ where the employer accounts for the benefit-in-kind in real time through Pay As You Earn. The aim is to have a simpler and clearer system that makes it easier for employers and employees to understand their obligations.