Employers must submit P11d forms to HMRC at the end of each tax year to report the value of certain employee benefits. These may be company cars and private medical insurance, or other benefits that have been provided to employees and directors
If you are covered by a formal payrolling arrangement with HMRC or are dealt with under a PAYE Settlement Agreement (‘PSA’) then you do not need to report on employee benefits (and if you are not sure, we can advise you).
Deadline for submitting P11ds
The deadline for submitting P11ds is 6 July following the tax year and a copy of each employee’s P11d, or the information it contains, must be given to the employee by the same date.
As you might guess, there are penalties for submitting late or incorrect forms, and the employer also has to pay Class 1A National Insurance Contributions on the value of all benefits provided by 19 July.
Certain benefits can be taxed through PAYE, or “payrolled”, provided you register to do this before the start of the tax year, however, P11ds are still required at the year-end to enable you to pay the Class 1A NICs.
Which employee benefits are taxable
Of course, you need to know which benefits provided to your employees are taxable, and how to calculate the taxable value.
Our team can do the sums for you and help you complete and file the P11ds and calculate the Class 1A NICs payable.
Tax implications of employee benefits
But before you get involved with benefits, talk to us about the tax implications of what you are planning to do.
For example, choosing the wrong company car package can have massive unanticipated tax consequences for the unwary and uninformed employer!
Let us help you create an attractive and tax-efficient employee benefits package.
Our P11d Employee Benefits Reporting Export
Kayleigh Carey is our accounts and tax manager and is ready to assist you in figuring out where you stand with employee benefits reporting. She can support you to complete and submit P11d forms and calculate Class 1A NICS. Get in touch with her today to get on top of your employee benefits.