P11D – to submit or not to submit

Whilst many employers won’t actually have any expense to report on their P11D forms for 2016/2017, HMRC still seem to be sending out reminder letters.

Last April the rules regarding reporting employer dispensations changed. This change meant that for 2016/2017, the employer no longer needed to use P11Ds to submit employee expenses which were exempt from tax. (Or in HMRC’s wording ‘wholly, exclusively and necessarily’ incurred in the performance of the employment.”) Such items include business travel, uniforms and phone bills. HMRC list all items on the gov.uk website.

Common sense would suggest that if there was nothing to report on the P11D, one wouldn’t need to be submitted, however this isn’t the case. As these forms have previously been submitted, HMRC will still expect them to be, despite not actually needing to do. Confusing, we know.

What should you do?

HMRC suggest that If you’ve received the notice to complete and file a P11D (or received the reminder letter), the employer (or you accountant) should complete and submit a “no return of class 1a NIC declaration”.

And in typical HMRC style – don’t be surprised if you receive an email from HMRC’s PAYE notifications advising you that there was no need to file a P11D/ P11D(b) – just to add to the frustration!

This is HMRC’s advice from a recent guidance update, however they didn’t react in time for the P11D reminders, therefore you may receive conflicting pieces of advice.

Undoubtedly, HMRC will review the guidance for next year, as it’s a widespread issue affecting many businesses (and leaving accountants explaining the work around to clients).

Don’t forget the deadline for filing P11Ds is 6 July, with payment by the 19 July (or 22 July if paying electronically).


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

Follow us

Tweets by @CHW-accounting

CHW-Accounting
@chw-accounting


Twitter: chw_accounting

WHAT'S THE NEWS?

Grab a biscuit and a brew and read our latest news.

20 May 2019

How long must I retain my books and records?

by

HM Revenue and Customs ( HMRC ) may check your records to make sure you’re paying the right amount of tax, but how far can they go back & how long should you keep business records?


Read more >

12 April 2019

Claiming back VAT on a vehicle purchase

by

You can usually reclaim the VAT paid on goods purchased for use in your business. However, with vehicles these often include an element of personal or private use. We explain the rules regarding reclaiming VAT on vehicle purchases.


Read more >

1 April 2019

Loans to employees – what you need to know

by

Whilst a business is perfectly entitled to loan money to employees or relatives, there can be tax implications if it does.  Here’s our brief reminder of those implications.


Read more >

28 March 2019

Guide to Payroll Changes from April 2019

by

If you are an employer there are several payroll changes which come into effect from April 2019 of which you should be aware.


Read more >

20 March 2019

Did you know – Uninhabitable properties are not liable...

by

Since April 2016 an additional 3% stamp duty charge has been imposed on buyers purchasing a second home. Irrespective of the circumstances. However, following a recent…


Read more >

YOUR CHALLENGES

No matter what your challenge is, we’ve probably dealt with it before.



Need an Accountant?

Get in touch >


Need an Accountant?

Get in touch >


Tax issues?

Find out more >


Tax issues?

Find out more >


Trying to grow your business?

We can help >


Trying to grow your business?

We can help >


Managing cashflow?

We can help >


Managing cashflow?

We can help >


Starting a business?

We can help >


Starting a business?

We can help >


Looking for funding?

Need help with funding? >


Looking for funding?

Need help with funding? >


Buying or selling a business?

We can help >


Buying or selling a business?

We can help >


Adopt the cloud?

We can help >


Adopt the cloud?

We can help >


What else can we do for you?

We can help >


What else can we do for you?

We can help >
CONTACT US

Get in touch, no hard sell, just a brew, a biscuit and a chat.