Consultation outcome

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

• From: HM Revenue & Customs
• Published: 9 August 2016
• Last updated: 5 December 2016 — See all updates

This consultation has concluded

Download the full outcome

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

PDF, 175 KB, 11 pages

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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.

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Original consultation

Summary

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

This consultation ran from
2:30pm on 9 August 2016 to 11:45pm on 4 October 2016

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.

Documents

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

PDF, 259 KB, 26 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 9 August 2016
Last updated 5 December 2016 + show all updates

1. 5 December 2016

   Published summary of responses.

2. 9 August 2016

   First published.