---
title: "Benefits: Benefits in Kind"
slug: "benefits-net-deduction-schemes"
updated: 2026-10-22T10:23:13Z
published: 2026-10-22T10:23:13Z
canonical: "help.cintra.co.uk/benefits-net-deduction-schemes"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.cintra.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# Benefits: Benefits in Kind

The **Benefits in kind** tab of the employee's **Benefits** tab is split into two sections that do different jobs:

- **Payrolled benefits**: Benefits that are taxed through pay. The benefit's cash equivalent is added to the employee's taxable pay each payroll period, so tax is collected as they go rather than through a P11D at the end of the tax year.
- **Benefit costs**: What a benefit costs you, and anything the employee pays towards it from their pay. These amounts are recorded for reporting.

The two sections are separate records and aren't linked. Adding, editing or ending a benefit in one section doesn't change the other.

> [!WARNING]
> **Important**: You can only assign benefits when editing an employee, not when creating them.

> [!NOTE]
> **Note**: If you are an [outsourced](/payroll/docs/in-house-vs-outsourced-payroll) customer and you can't see the benefit you need, contact your bureau.

For other types of benefit, such as salary sacrifice schemes and company vehicles, see [Benefits: Where to enter each type of benefit](/payroll/docs/benefits-where-to-enter-each-type-of-benefit-cost).

To access benefits in Cintra People Payroll, open a payroll, select the employee, then click the **Benefits** tab.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-X7UF8COU.png)

## Which section should I use?

Because the two sections are separate, you may need to add a benefit to one section or to both, depending on what you need it to do. If you add a benefit to both sections, it isn't taxed twice.

| I want to… | Add the benefit to | Example |
| --- | --- | --- |
| Tax the benefit through payroll only | **Payrolled benefits** | You payroll private medical insurance for tax, but track what it costs you in your finance system. |
| Record the cost only | **Benefit costs** | You report a health cash plan on the employee's P11D at the end of the tax year rather than payrolling it, but want to record what it costs you and take the employee's contribution from their pay. |
| Tax the benefit through payroll and record the cost | **Payrolled benefits** and **Benefit costs** | You payroll private medical insurance for tax, and also want to record the premium you pay and the employee's top-up for reporting. |

## Viewing benefits in kind

Payrolled benefits are grouped by their HMRC benefit section. Any payrolled benefit without an HMRC section is listed under *Uncategorised*. Benefit costs are grouped by scheme.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-WKACMDO5.png)

Each benefit shows its amount (the cash equivalent for payrolled benefits, or the employee and employer contributions for benefit costs), its start and end dates, and its status:

- **Active**: The benefit has started and hasn't ended.
- **Upcoming**: The benefit's start date is in the future.
- **Inactive**: The benefit has ended.

Use the **Show me only active benefits** toggle to hide benefits that have ended. (Verify)

## Adding a payrolled benefit

1. In the **Payrolled benefits** section, click **Add benefit**.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-R5ZP73JW.png)

1. Select the benefit you want to assign, then click **Continue**. Each benefit shows its HMRC section underneath its name.
  - Only benefits the employee doesn't already have are listed. If there are none left to assign, **No benefits available to assign** is displayed.
2. Enter a **Start date**. The **End date** is optional; leave it blank if the benefit is ongoing. Click **Continue**.
  - The dates can't overlap an existing record of the same benefit for this employee. If they do, a validation error is displayed. [Edit](/payroll/docs/benefits-net-deduction-schemes#editing-a-benefit) or [end](/payroll/docs/benefits-net-deduction-schemes#ending-a-benefit) the existing record first, or choose different dates.
3. Choose how you want to enter the cash equivalent:
  - **Annual amount**: The cash equivalent for the whole tax year.
  - **Per period amount**: The amount taxed each payroll period.
4. Enter the cash equivalent, then click **Assign benefit**.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-JMBN2C4G.png)

The cash equivalent is added to the employee's taxable pay from the next payroll calculation, and appears on their payslip with the note "Unpaid for tax purposes only". If the benefit starts or ends part-way through a payroll period, the amount for that period is pro-rated.

> [!NOTE]
> **Note**: A payrolled benefit only sets up the taxable amount. It doesn't record what the benefit costs you or take anything from the employee's pay. If you need to do either, add the benefit under **Benefit costs** as well.

> [!WARNING]
> **Important**: If the benefit's payroll heading is also mapped to a P11D section in Cintra iQ, the benefit will be reported again on the employee's P11D at the end of the tax year. Check the heading's setup in Cintra iQ to avoid reporting it twice.

## Adding a benefit cost

1. In the **Benefit costs** section, click **Add benefit**.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-KZWP7FLN.png)

1. Select the benefit you want to assign, then click **Continue**. Each benefit shows its default amount per payroll period, if one has been set.
  - Any benefit the employee already has is greyed out and can't be selected.
2. Enter a **Start date**. The **End date** is optional; leave it blank if the benefit is ongoing. Click **Continue**.
3. Choose whether the contributions are a **Fixed amount (£)** or a **Percentage (%)** of the employee's gross pay.
4. Enter the **Employee contribution** and **Employer contribution**. If the benefit has a default value, it is filled in for you. To change it, click the **Override default value** toggle.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-JO5T4EVM.png)

1. Click **Add benefit**.

> [!NOTE]
> **Note:** A benefit cost only records what the benefit costs. It doesn't tax the benefit through payroll. If the benefit should be payrolled for tax, add it under **Payrolled benefits** as well.

## Managing existing benefits

To manage a benefit in either section, click its ⋮ icon. The actions available depend on the benefit's status.

### Editing a benefit

1. Click the benefit's ⋮ icon, then click **Edit benefit**.
2. Change the start date, end date or amount as required:
  - For a payrolled benefit, you can enter the cash equivalent as an **Annual amount** or a **Per period amount**.
  - For a benefit cost, you can change the employee and employer contributions. To change a default value, click the **Override default value** toggle.
3. Click **Save**.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-6HL517HO.png)

> [!WARNING]
> **Important**: Changing dates or amounts may recalculate payroll and update previous payroll periods. Editing also overwrites the previous values, with no record of what they were. If the value of a benefit genuinely changes (for example, a new annual premium), renew it instead.

### Renewing a benefit

Renewing ends the current benefit and creates a new one from a start date you choose, with a new amount. This keeps a clean record of when the value changed, for example when a premium changes at the start of a new policy year.

You can only renew a benefit that is active and has no end date. You can't renew a benefit that:

- hasn't started yet
- already has an end date (to change when it ends, edit the end date instead)
- has already ended

To renew a benefit:

1. Click the benefit's ⋮ icon, then click **Renew benefit**.
2. Check the current details, then click **Continue**.
3. Enter the start date for the renewed benefit, then click **Continue**.
4. Enter the new amount, then click **Renew benefit**.

![](https://cdn.document360.io/fc2cda72-4645-4b36-96bf-60439ec11f11/Images/Documentation/image-MEDP6NFR.png)

The current benefit ends the day before the renewed benefit starts.

### Ending a benefit

You can only end a benefit that is active and has no end date. If the benefit already has an end date, edit the end date instead.

1. Click the benefit's ⋮ icon, then click **End benefit**.
2. Enter the **End date**.
3. Click **End benefit**.

The benefit stops from the end date you enter, and its status changes to **Inactive** once that date has passed. For a payrolled benefit, anything already taxed stays taxed, and the rest of the cash equivalent isn't collected.

### Deleting a benefit

Click the benefit's ⋮ icon, then click **Delete benefit** and confirm.

> [!WARNING]
> **Warning**! Deleted benefits can't be restored. If a benefit has already been used in payroll, end it instead so its history is kept.

You can't delete a payrolled benefit that started before the current payroll period. If you try, the message "This benefit can't be deleted because it started before the current payroll period" is displayed. End the benefit instead.

## FAQs

#### Will a benefit be taxed twice if I add it to both sections?

No. Only **Payrolled benefits** are taxed through pay. **Benefit costs** record what the benefit costs.

#### Why can't I see the benefit I want to assign?

The employee may already have it. You can only have one active record of each benefit in each section. Payrolled benefits the employee already has aren't listed, and benefit costs they already have are greyed out.

If the benefit hasn't been set up yet, it won't be listed. If you are an outsourced customer, contact your bureau.

#### Why is a payrolled benefit listed under Uncategorised?

Its payroll heading hasn't been given an HMRC benefit section in Cintra iQ. Once it has, the benefit is listed under that section instead.