
In the February 2021 Employer Bulletin, HMRC have announced the end of informal payrolling arrangements.
Informally payrolling

HMRC state that ‘The small number of employers who informally payroll benefits must now… formally register for payrolling before the start of 2021 to 2022. [HMRC] will no longer accept informal arrangements’
For those who have not registered for the 2020/2021 tax year, there is a legal requirement to report all benefits informally payrolled on form P11D.
Reporting expenses and benefits

HMRC state that ‘From 6 April 2021, you must tell [HMRC] about any expenses and benefits your employees received during 2020 to 2021
If you registered to payroll your benefits for the 2020 to 2021 year remember you still need to submit a P11D(b) to tell us about the Employer Class 1A National Insurance contributions due. You only need to submit a P11D for any benefits you did not [formally] payroll’.
Payrolling expenses and benefits for 2021 to 2022

Register now to payroll your benefits for 2021 to 2022 and report benefits at the same time as your employees’ PAYE on the FPS. You can deduct and pay tax on most employee expenses if you have formally registered before the start of the 2021 to 2022 tax year.
You do not need to submit any P11D for an employee if you are payrolling all their benefits.
You would still need to submit a P11D(b) so you can pay any Class 1A National Insurance you owe.
PAYadvice.UK 10/2/2021
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