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Benefit in Kind Tax - Change to P11D Process

No. 085/22

25th February 2022

Dear Colleagues,

Benefit in Kind Tax – Change to P11D Process

The purpose of this LTB is to advise Branches and Representatives of a change that Royal Mail Group (RMG) are making to the way Benefit in Kind tax is to be processed in payroll and reported to HMRC. This is a change that RMG are making from the start of the new tax year on 6th April 2022, in advance of HMRC making it mandatory in the near future.

The change relates predominantly to any Benefit in Kind tax on employee benefits either from My Bundle+ or on Company cars and Private Medical etc. This is currently reported to HMRC through an annual P11D report, but will be replaced by the real-time pay-rolling of benefits going forward.

Switching to real-time processing of changes in tax liability should eliminate the confusion that is sometimes a result of the 12 to 18-month delay in tax code changes through the current annual P11D process. The pay-rolling of benefits will happen automatically in Payroll, off the back of the weekly / monthly benefits pay deduction process, making it more efficient and reducing the risk for human error.

Attached is a draft communication (Attachment 1), which will be sent by the Business to all employees around 1st March 2022 as part of the management’s My Bundle+ annual renewal home mailing initiative. Also attached is the FAQ document (Attachment 2) which will support the communication from RMG, that Branches and Representatives may be able to use to answer any questions that arise.

It should be made clear that My Bundle+, Company cars, Private Medical and so on are RMG initiatives and are not agreed with the CWU.

Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department.

Yours sincerely,

Terry Pullinger Deputy General Secretary (Postal)

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