If an employee is subject to PAYE on a notional payment (see E4.1120) they are required to 'make good' that PAYE deduction to their employer, within 90 days of the end of the tax year concerned. If they do not do so, the PAYE not 'made good' is treated as a further benefit in kind, reportable on form P11D1. This means the P11D must be filed by 6 July, see E4.11124, following the tax year in which the notional payment arises. In practice, this happens most frequently where an employee is deemed to have received benefits in connection with share awards, and the employee does not have sufficient other PAYE income for the employer to be able to
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Web page updated on 17 Mar 2025 13:36