Follow this article if you want to payroll benefits and expenses.
Register with HMRC #
If you wish to payroll benefits and expenses before the start of the tax year, you must register with HMRC using the payrolling employee’s taxable benefits and expenses online service.
Benefits Pay Definition #
Add a new Pay Definition with an appropriate name
- Setup > Pay Definitions > Add
- Select the Company and use the Payment Template
- Clear all outputs except:
- Gross pay for PAYE purposes and Gross Benefits In Kind (BIK)
- .Gross pay for the journal
- Click Add

Employee Pay Item #
Add the required pay items to any affected employees in the Pay Item Editor.
Check Operation #
The benefit pay definition will work by:
- Increasing Gross pay for PAYE purposes by the amount of the benefit and
- reporting to HMRC the benefit via Gross Benefits In Kind (BIK).
Check that the PAYE tax amount increases when you add the benefit