I was preparing a return for a client today who had made medical benefit payments on behalf  some employees. These payments are normally required to be returned on the monthly payroll as benefits in kind (BIK). However in this case certain employees had left the company. Because there was a commitment to pay the full term of the medical payments, which did not become apparent until the employees had left,  some of them were omitted from reporting through the regular payroll run.

A P11D, employer return of benefits in kind, is obligatory where the employee has left and also where there may be other benefits not reportable through the payroll.  Such benefits may include employer PRSA payments, where the total employee and employer PRSA payments exceed the maximum tax free % normally allowed for an individual. The deadline for a P11D for year ended 31/12/2009 is 31 May 2010. This is just over 3 weeks so if you require any assistance from us with your P11D compliance see O’Mahony contact details.