The P11D form required by every employer is due for submission by 6th July 2017
The statutory form is required by HMRC from all UK based employers detailing the cash equivalents of expenses provided during the tax year to employees and directors who earn more than £8,500 a year. To simplify, the purpose of these forms is to tell HMRC everything they need to know about employee’s income, expenses and allowances.
At the end of the tax year you will need to submit a P11D form to HMRC for each employee you’ve provided with expenses or benefits, for example, company cars, health insurance, non-business travel expenses. You’ll also need to submit a P11D form if you’ve paid employees expenses through payroll or if HMRC have made a request for you to submit the form.
The process of gathering the necessary information can take some time, so it is crucial that this process is not left to the last minute. Without careful checking, employers can suffer large penalty charges for not keeping up to date with obligations. It is also important to note that the duty is of the employer to fill out this form, not the employee.
Employees pay tax on benefits provided as shown on the P11D form, generally via a PAYE coding notice adjustment or through the self-assessment system. If employers have used payroll systems to report benefits, employees need to be informed of the benefits inputted.
Regardless of whether benefits are being reported via P11D or through payroll, the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.
The deadline for payment of the Class 1A NIC is 19th July or the 22nd for cleared electronic payment. As 22nd July is a Saturday, it may be best to ensure cleared payment is made by Friday 21st July.