P11D’s Can Be A Pain

So it’s that time of year again and the P11D filing deadline is drawing near.

A lot of company owners I speak to are worryingly unaware that a P11D and P11D(b) may need to be submitted.

This is because there is a common belief that a P11D is only needed if the company provides benefits such as healthcare or a company car.

Unfortunately, this is not the case.

What Is A P11D and P11D(b)?

A P11D is a form stating the amounts of expenses and benefits an employee (including a director) has received throughout the tax year (6 April 2013 to 5 April 2014).

Some expenses and benefits are liable to Class 1A National Insurance Contributions which are charged at 13.8%.

A P11D(b) is a declaration made by the employer stating that they have submitted P11D forms for all relevant employees. A P11D(b) also declares the amount of Class 1A NIC’s due by 19th July 2014.

There is also a P9D form which is used for any employees who have earned less than £8,500 in the year.

Who Needs To Complete A P11D?

A P11D or P9D will need completing for each employee who has received benefits and/or been reimbursed expenses by the company.

So if you have reimbursed an employee (including a director) for expenses such as travel, accommodation or entertainment then you will have to complete a P11D for them.

How Do I Complete A P11D?

You can complete a P11D by paper, here is the link to the forms.

You can use your payroll software, this is usually the simplest option.

You can use HMRC’s online service.

The forms must be submitted by 6th July and HMRC have a high record of rejecting P11D’s for various reasons. Therefore, it is safest to use either your software or HMRC online so that you don’t have unnecessary delays.

Top Tip

If you are an employer who does not provide benefits to your employees but you have to submit a P11D because of reimbursed expenses then you can apply for a dispensation.

This means that you may not have to prepare a P11D in future.

You can apply for a dispensation online here.

I hope this helps but if you have any queries then please get in contact.

Vikki

Striped Leopard can prepare your P11D’s for you and submit them on your behalf.
Why not get in touch to see how we can help you?