The deadline for submission of the P11D is fast approaching. All employers must issue their P11D’s to HRMC before the 6th of July.
The P11D form details any expenses or benefits provided to employees during the tax year.
Anything the company pays for that is an addition to an employees salary has to be documented on the P11D form, for example:
- Company Car
- Health Insurance
- Non- business travel Expenses
You can complete the P11D form online using either PAYE online service or online end of year expenses and benefits forms. A separate form must be completed for each employee or director. It needs to include any expenses payments, benefits or facilities provided to them or a member of their family or household.
There is no need to complete a P11D if you have already taxed the expenses through your payroll.
Exempt business expenses
Prior to April 2016, a special dispensation could be obtained from HRMC to exclude certain expenses.
An exemption system is now in place. This means the majority of business expenses incurred personally by company employees no longer need to be recorded on a P11D form. These include:
- Business Travel
- Business entertainment expenses
- Credit cards used for business purposes
- Fees and subscriptions.
When you need to complete a form P11D(b)
A P11D(b) form must be completed and signed if you are liable for any expenses or benefits on form P11D. It declares the amounts of Class 1A national insurance due to be paid for the year. The form itself is split into 4 sections:
- The return of Class 1A National Insurance contributions due for the year.
- Declaration covering the return of Class1A National Insurance and expenses.
- Information on how to complete the form.
- Any adjustments needed to the total benefits liable to Class 1A National Insurance.
Penalties apply if you are careless or deliberately submit incorrect information or if you do not make the return before July 6th. Not filing within the appropriate time limit may incur a penalty not exceeding £300, with a further penalty not exceeding £60 a day thereafter. If you make an incorrect return there is a maximum penalty of £3,000 per form.
If you have any difficulties completing a P11D or P11D(b) form you can find more information on gov.uk
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