It is now that time of year again. New tax year, new forms, new returns that need submitting to HMRC. Some of these can be quite confusing so I am going to give you a quick run through of the ins and outs of a P11D is as this is one of the first forms that employers need to submit this year.
What is a P11D?
The P11D form is used to report on benefits in kind – these are benefits which employees or directors receive from their company but which are not included in their salary. This can include items such as; private health care, train season tickets and company cars.
As these benefits effectively increase your salary there may be National Insurance contributions to be paid on them, however, this will be paid by the company as opposed to the individual.
Who needs to file a P11D?
P11D’s are completed by the employer, not the employee. It needs to be completed for all directors and also all employees that earn over £8,500 per year.
When do P11D’s need to be filed?
All P11D’s must be filed by 6th July relating to the previous tax year. So for the tax year running from 6th April 2017 – 5th April 2018, the P11D must be filed by 6th July 2018.
What needs to be included in a P11D?
Items that the company pays for that the employee benefits from, need to be included on the P11D form. Expenses and benefits that need to be included are:
- Company cars
- Health insurance
- Assets provided to an employee that has a significant personal use (eg mobile phone)
- Self-assessment fees paid by the company
- Non-business travel expenses
- Non-business entertainment expenses
P11D Penalties
Like most tax filings HMRC are lurking with their penalty guillotine waiting for it to be filed late or incorrectly. If the 6th July deadline is missed, penalties won’t incur straight away – you have roughly a fortnight to put things right. If it comes to being around 19th July and it still hasn’t been filed, the company (not the individual) will incur fines of £100 per month. If it still hasn’t been filed by November, HMRC will send you a reminder, along with details of all the penalties that you have accrued up until that point. Also if the P11D is incorrect you could also face fines. If HMRC thinks that the mistake was genuine you might not face fines. However, if HMRC believes that you acted carelessly, penalties of 30%, 70% or 100% can be applied.
If you need help with completing and submitting your P11D’s, please feel free to get in touch with us here at MAP.
