At the end of the benefit in kind tax, employers have to report Benefits in Kind (BIK) to HMRC, using a P11D form. This form gives the details of the taxable value of benefits offered to employees. Most benefits must be paid for by Class 1A contributions to National Insurance by employers too. Sometimes employers settle tax and National Insurance charges on employees' behalf with a PAYE Settlement Agreement (PSA). If HMRC are not given the right numbers then there are penalties to pay.

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