[11:49] Stuart Hogg

Flu Vaccines and Employee Benefits

By October 12, 2023No Comments


If I provide flu vaccines for my employees do I need to report these via a P11D or process the payment as a Benefit in Kind through the payroll?

Benefits in Kind for employees can become quite complex and there are some ambitious employee benefits schemes available.  With benefits in kind previously you would need to complete a P11D at the end of the tax year for every employee receiving the benefit but now many employers choose to process the benefits via payroll instead.  If benefits are reported via payroll there is no requirement for individual P11Ds just the P11D(b) summary to submit.

To process benefits in kind via payroll you need to register with HMRC in the preceding tax year. (See goverment website)  The guidance has changed slightly but informal payrolling of benefits is still possible; you should complete the application form with HMRC as soon as you start, do not leave it until later in the tax year.  Informal payrolling is where the benefit is processed through payroll prior to being registered with HMRC. 

If the benefit is only informally processed then a P11D is still required for each employee but you would need to report the amount processed through payroll.  The advantage with this is employees should not have a tax liability and so will not have their tax codes effected but it is more administration.

Not all benefits need to be reported to HMRC and there are options such as PAYE settlement agreements but you will be best to discuss this with your tax advisor.  Flu vaccines provided to the employee at the workplace or with a voucher do not need to be reported and are considered to be a trivial benefit.  Prior to 2016 seasonal flu vaccines are listed as an example of a trivial benefit as shown here

If you reimburse your employee for a flu vaccine it is likely different rules apply and the payment needs processing in the payroll and subject to tax and NI.  Speak to your tax advisor if you are considering this type of scheme to confirm what you need to do.