Deadline Alert: 6th July – What’s so special about this date?

This is the day when companies need to submit their P11d and P11d(b) to HMRC and their employees. Read on to find out if you’re one of them.

Do I need to do P11d and P11d(b) reporting?

 

If your company has offered employees non-cash benefits such as health insurance, gym memberships, company cars, interest-free overdrawn director’s loans, and even food and staff entertainment, then the company is responsible for paying National Insurance and the employee is responsible for paying PAYE.

What’s required and when?

Here’s the rundown:

  • P11d: A form must be completed for each employee and submitted to both HMRC and the employee. The form needs to detail the type of non-cash benefit provided and its calculated value.
  • P11d(b): A summary report submitted to HMRC that outlines the total value of non-cash benefits provided by the company and the calculated National Insurance payment.
  • Both forms must be submitted by the 6th of July following the end of each tax year.

The deadline for National Insurance payment is 22nd July after the end of the tax year.

What are the consequences of missing the deadline?

Late submission and payment of P11d forms can result in a fine of £100 per month or part month per 50 employees if not submitted by the 19th of July.

What if my company pays employee benefits through the payroll?

Even if you’re already paying employee benefits through payroll, you still need to complete P11d(b) reporting and make the necessary National Insurance payment.

Can I avoid my employees paying tax on their benefits?

For some taxable benefits, you can enter into a PAYE Settlement Agreement (PSA) with HMRC where the company pays an annual payment to cover tax and National Insurance on employee benefits and expenses, eliminating the need for P11d and P11d(b) reporting and payment.

What’s next?

If you think you may have offered non-cash benefits to employees during the tax year, and you’d like assistance with the process, get in touch with us by 31st May to ensure you meet the 6th July deadline.