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Making Taxable benefits easier and understanding P11D.

What you need to know about P11D?

If you’re an employer, you must file an end-of-year report with HMRC for each employee who received benefits, that were not included in their wages.

For workers and directors, you would use the form P11D to send the report to HMRC.

P11Ds must be submitted to HMRC by the 6th of July following the end of the tax year.

This is also the deadline for providing a copy of the P11D to your employees and informing HMRC of the entire amount of Class 1A National Insurance you owe.

Employers do not need to create P11Ds for their employees if they choose to take advantage of payroll perks.

However, you must still compute Class 1A National Insurance contributions and file form P11D(b) by the 6th of July following the tax year’s end.

The key advantage for employees is that their tax will be collected immediately rather than through an amended tax code the following tax year.

What you need to know about taxable benefits.

The perks you give to your employees can be included in payroll if you register with HMRC before the start of the tax year in which the benefits are to be paid. For any queries on registering, please see the link below.

https://www.gov.uk/guidance/payrolling-tax-employees-benefits-and-expenses-through-your-payroll

When you pay employees’ payroll benefits, you add the cash equivalent of their benefits to their taxable pay and tax them straight away.

This means HMRC will not be able to collect tax that has already been taken from your employees.

Even if you provide payroll benefits informally, you must still complete form P11D.

This needs to be done at the conclusion of the tax year and you must mark each P11D as ‘Payrolled.’

If for any reason you miss the registration deadline, you can request that HMRC pay you informally. You can apply by writing to the following address:

Complex Caseworker Team
National Insurance Contributions and Employer Office
HMRC
BX9 1BX

Whether or not this is appropriate for your company is dependent on your specific circumstances.

For more information, please contact us on 01618324451 or fill in the form below.