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Dates for ‘making good’ benefits in kind

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HMRC is consulting on proposals to align the ‘making good’ dates for payrolled and non-payrolled benefits in kind. ‘Making good’ is where employees make a contribution to the provider of the benefit in kind to reduce the tax due on the cash equivalent of the benefit. Current legislation contains different making good dates for different benefits in kind, while in some cases no statutory date is specified at all.

The main proposal would require making good by the end of the tax year, except for those benefits in kind where there are practical difficulties in doing so, in which case the deadline would be extended until 1 June following the end of the tax year. This would also ensure that making good takes place before the Class 1A NICs liability on the benefit in kind is due.

The following benefits in kind should be made good by the end of the tax year (5 April):

·        employer-provided living accommodation;

·        non-cash vouchers;

·        private medical insurance;

·        the employer meeting the employee’s pecuniary liability;

·        in-house benefits; and

·        the loan of assets.

The following should be made good by 1 June following the end of the tax year:

·        car and van fuel benefit;

·        credit tokens; and

·        beneficial loans.

The closing date for responses is 4 October 2016. See

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