Penalties for P11D's

Penalties for P11D's

By Amandeep Khatri

What's happening on 6th July?

The annual deadline for P11D’s submission is approaching! Employers are required to submit P11D’s by the 6th of July for their employees and P11D(b)’s for the company as a whole. One thing to be aware of at this time of the year is the penalties you could face for late submissions or late payments. 

Employers are required to submit a P11D or P11D(b) if they provide their employees with non-cash benefits such as a company car, health insurance, or even a gym membership. The employer is liable to pay National Insurance and the employee is liable to pay PAYE. 

Fines for late/non-submission or payment can escalate pretty quickly, so it’s important to be aware of how much these can cost your business. Employers can also be fined if HMRC find that any of the information submitted was false or inaccurate.

What do I need to do as an employer?

P11D’s and P11D(b)’s must be submitted by 6th July following the end of the tax year. 

National Insurance contributions payable on benefits or expenses must be paid by  22nd July,  (19th July if by cheque).

What happens if I miss the deadline?

Late P11D

  • Failure to submit the P11D on time can lead to a £300 maximum initial penalty. HMRC needs to apply to a first-tier tribunal that decides whether to impose these penalties. 
  • If the tribunal decides to impose the penalties, then further penalties of a maximum of £60 a day can be issued until submission of P11D’s. 

Late P11D(B)

Penalties relating to the P11D(b)’s work a little differently. They are issued on the basis of a ‘relevant monthly amount’. This means the following:

  • If the number of employees for which businesses need to pay Class 1A National Insurance on benefits is less than 50 the fine is £100
  • If the number of employees for which businesses need to pay Class 1A National Insurance is 50 or more, £100 is payable per 50 employees, and an additional £100 if the number is not a multiple of 50.

Employers will also be liable to further penalties if the lateness of submission extends beyond 12 months. 

One thing to note is that the total penalty can’t exceed the amount of Class 1A National Insurance due. 

Not sure? Get in touch

If you think you have provided non-cash benefits to your employees in the tax year ending 5th April 2021 and need some help filing P11D's and P11D(b)’s please get in touch with us.

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