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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: employer and contractor’s role: benefits and expenses

The main sections of the Regulations, which require employers to make returns of benefits paid and made available to employees, are summarised below.

The Income Tax (Pay As You Earn) Regulations 2003, (SI No.2682)

  • Regulation 67 - information to employees about payments and tax deducted (P60).
  • Regulations 85, 86, 87, 88, 89 - return of other earnings.
  • Regulation 94 - other earnings - information to be provided to the employee by the employer.
  • Regulation 95 - other earnings - information to be provided to employee by other persons.
  • Regulation 90 - return where a car is made available.
  • Regulations 91, 92, 93, 96 - termination payments and other benefits - information to be provided.

National Insurance Contributions -

Social Security (Contributions) Regulations 2001, (SI 2001 No.1004)

  • Paragraph 9 of Schedule 4 - information about NICs and earnings the employer must give the employee (provided on form P60).
  • Paragraph 22 of Schedule 4 - end of year return for earnings, statutory payments and Class1 NICs including expenses and/or benefits subject to Class 1 NICs.
  • Regulations 68 & 84 - special provisions relating to direct payment of primary Class 1 NICs (some expenses & benefits will be subject to Class 1 NICs).
  • Regulation 72 - provisions relating to Class 1A NICs due on succession of business.
  • Regulation 73 - provisions relating to Class 1A NICs due on cessation of business.
  • Regulation 80 - return where Class 1A NIC due on benefits in kind.

Where there is a dispute with an employer they should be referred to the actual text of the Regulation.