Employers must submit P11d forms HMRC at the end of each tax year to report the value of certain benefits (such as company cars and private medical insurance) they have provided to employees and directors, unless they are covered by a formal payrolling arrangement with HMRC, or are dealt with under a PAYE Settlement Agreement (‘PSA’).
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 though PAYE, or “payrolled”, provided you register to do this before the start of the tax year, but P11ds are still required at the year end to enable you to pay the Class 1A NICs.
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.
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 benefit package.