Budget 2016: Extending real time collection of tax on benefits in kind

Following Finance Act 2015, HMRC has introduced regulations allowing employers to choose to use their RTI systems to collect tax on certain classes of benefits in kind. Initially the only exceptions were for beneficial loans, accommodation and credit vouchers and tokens.

From 6 April 2017, employers will also be able to use RTI to collect taxes on non-cash vouchers and credit tokens.

This is part of the HMRC’s wider objective to have most, if not all, benefits taxed through the payroll using the RTI system, with the objective of reducing the scope for error and evasion in the taxation of benefits in kind.