Notifying HMRC of employees’ expenses and benefits can be a lengthy process for any employer.
Ian Orgill and Nicola Roby highlight the recent changes to the P11D, their top tips for ensuring a smooth application and how to minimise the administrative burden placed on payroll.
A P11D is a form used to disclose to HMRC the expenses and benefits an employee or director have received in a tax year. Examples of which include:
The form is completed once a year and one is prepared for every employee receiving benefits and or expenses.
A P11D(b) is completed to report the Class 1a NIC due on the beneficial payments.
P11Ds are due for filing together with any payment for class 1a NIC by no later than 6th July.
1. From 6th April 2017 an exemption was brought in to cover any “routine employee expenses” meaning you don’t have to report certain business expenses and benefits, for example:
2. Optional remuneration arrangements will be taxed the higher of the salary forgone or the taxable benefit in kind. However, this will not apply for:
3. A new £500 exemption for employer paid pension advice was introduced
If you are having any difficulties with completing your P11D, feel free to call the team who will be happy to help on 01204 534 031 or via our contact us page.
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