Benefits in kind
Help your team
If you provide expenses or benefits to your employees, you may have made a Benefit In Kind (BIK). These are benefits that cannot be converted into cash but have a cash value, such as a company car, out-of-work entertainment, or childcare. Because your employees are getting non-work-related benefits due to their employment with you, you may have to pay tax and National Insurance on them as you would with their regular pay. The reporting process is convoluted and can often be a frustrating addition to the already full plate of a business owner. That’s where we come in.
We can take on the whole process on your behalf and keep you compliant with HMRC’s demands. We’ll fill and send all the forms that HMRC needs so you can pay the correct tax. We’ve got an eye for accuracy – we need to so none of our clients get a financial penalty for mistakes in the tax return. We’ll keep records of the dates and details of every benefit you provide, any payment your employees contribute to an expense, and any correspondence your business has with HMRC.
To report a BIK, businesses usually submit a P11D to HMRC for each employee they’ve provided a BIK to. Alternatively, you can pay tax on benefits through your payroll as long as you’ve registered with HMRC before the start of the tax year. It makes no difference to our service which method you would rather us use to deduct your taxes on employee expenses. Whichever approach you take, we’ll also submit a P11D(b) form for you to show how much Class 1A National Insurance you need to pay on all the benefits in kind you’ve provided.
Here’s what our clients think
“The team at Synergee oversee the accounts and payroll provision for all three of our businesses. They are responsive, friendly and thorough. The entire team go out of their way to provide the highest quality support, providing my business partner and I with the confidence and peace of mind that everything is in hand. We can’t thank the Synergee team enough and look forward to many more years of working with them.”
Evolve and Adapt Limited