What are Benefits In Kind? Small Business advice from Hubu Accountants
At Hubu Accountants in Wales we often get asked questions from clients who are unsure about what they are entitled to. Recently, we sent out reminders to several Small Business Owners and Self Employed people to return their Benefits In Kind paperwork to HMRC before the cut off date in July. However, several clients had never completed this BIK paperwork before, so our team of expert accountants were on hand to guide them through it.
What are Benefits In Kind?
Benefits In Kind are classed as non-cash Benefits or perks that you receive as an employee or Business Director. These are on top of any wages and commission received, and are sometimes referred to as 'fringe benefits'.
For instance, you may offer your employees the use of a Company car for personal use, or maybe they have private medical care as part of their employment package. Another popular perk that Companies offer for their employees who are parents are childcare vouchers.
It's important to check the pros and cons before offering Benefits In Kind to your employees or taking advantage of them yourself as there may be tax implications involved.
How do I report Benefits In Kind?
If you are an Employer, it is your responsibility to report the Benefits In Kind of your employees. You need to report this to HMRC by the cut off date to avoid any fines. This involves completing a P11D form; however if you have an Accountant they can complete this on your behalf, they will just require your signature.
How to get help with my Benefits In Kind paperwork?
If you are a Small Business in Wales or a Self Employed person in Wales, get in touch with Hubu Accountants today on 0800 206 2625 to see how we can help with your Benefits In Kind form and any other tax and accounting paperwork you may need guidance with. If you need help with Making Tax Digital you can read our blog here.