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This section is for any personal bills the employer pays on behalf of the employee. A really great example could be an employer paying a phone bill for an employee or gas and electricity bills.
The taxable value is reported on the P11D, but employers must also pay Class 1 NIC liability through the payroll when the payment is made. This is because the employer has settled the employee’s pecuniary liability, which means they paid a bill which was in the employee's name.
💡 Pro tip: if the bill is in the name of the employer rather than the employee, then no Class 1A NI is due.
For more information on Section B, please visit this website.
Please note – This guideline is not exhaustive, and it does not cover every eventuality. Its main focus is on the most typical scenarios that usually happen in reality. It's important to be aware of other possibilities as well. If you need more detailed information, please refer to the HMRC website. Always consult a tax advisor if you have any doubts or queries.