Salary Sacrifice Benefits in Kind

Remember: Benefits in Kind, (other than pensions, cycle to work & childcare vouchers) that were, in previous years, put through the payroll as salary sacrifice need to be included on a P11D and filed at HMRC by 6th July 2019.  

You need to report the greater of the taxable value of the benefit in kind using the usual rules and the pay the employee gave up in exchange for that benefit.  For example, if an employee gives up £60 per month of their salary in exchange for a mobile phone and you pay £50 per month under a business contract for that phone, you would include both amounts on the P11D:

  • £720 (£60 x 12) the salary that your employee gave up; and
  • £600 (£50 x 12) you paid for the mobile phone contract.