Tag: employee benefits

2 articles

Accounting Standards

Employee Benefits and Pension Accounting: Defined Contribution vs Defined Benefit Under IAS 19 and FRS 102

A year-end note showing a surprise retirement benefit liability sends many SME owners searching for answers. This article unpacks why defined contribution pensions barely register on the balance sheet while defined benefit schemes create a measured, monitored liability under IAS 19 and FRS 102 Section 28, with a full worked example of actuarial movements, journal entries, and covenant implications.

7 min read
Tax & Compliance

P11D and Benefits in Kind Explained: How to Report Company Cars, Private Health Cover, and Perks Without Triggering a Penalty

Company cars, private health cover, and other perks all count as benefits in kind, and HMRC expects them valued and reported correctly on P11D forms every year. This guide breaks down how valuations work, what Class 1A NIC actually costs your business, the exact deadlines for filing and payment, and the journal entries needed to keep your books aligned with HMRC — all illustrated with a worked example so nothing gets left to guesswork.

5 min read