Payrolling Benefits in Kind

P11D Car Salary Sacrifice Scheme

With effect from 6th April 2021, LCCs Payroll & Pensions Service will commence payrolling some benefits in kind to negate the requirement for a P11d to be produced at the end of each financial year.

The main benefit in kind to be affected by this change is the Car Salary Sacrifice Scheme.

This new way of payrolling benefits in kind will also apply to the small number of employees who have chosen to retain a company car obtained from a previous employer.

The change will mean that you will pay tax in real time, which will be collected through your monthly salary payment in the usual way. It is a more convenient way of doing things for both you and the Council because it will mean that a P11d form will no longer be required once the new process is fully implemented.

There will be a short period of transition as a P11d may still be required for the 2020/21 financial year, if you use the Car Salary Sacrifice Scheme, which may result in a reduction in your current tax code.

If you require details of benefits in kind for tax self-assessment purposes, figures will be provided to you at the end of each financial year.

Further information is available on the HM Revenue & Customs website