P11d Forms: What you need to know as an employer

P11d Forms: What you need to know as an employer

By Emily Win

6th July - Why is this date important?

This is the annual deadline for the P11d and P11d(b) submission to HMRC and your employees.  Read on to find out if this deadline applies to you.

How do I know if I need to do P11d and P11d(b) reporting?

If your company has provided certain non-cash benefits to employees during the tax year then National Insurance is payable by the company and PAYE payable by the employee. Examples are health insurance, gym membership or company car, an interest-free overdrawn director's loan account, and even food and staff entertaining.

What P11d and P11d(b) reporting is required and by when?

 

Form

For

Provided to 

P11d

Each employee

HMRC and each employee

P11d(b)

Company as a whole

HMRC

 

Both the P11d and the P11d(b) must be filed to HMRC by the 6th of July after the end of each tax year.

What is required on a P11d?

A form needs to be completed for each employee providing the required details and the calculated value of the non-cash benefit to HMRC.  The details and value calculations are different depending on the type of non-cash benefit provided.

What is required on a P11d(b)?

This is a summary report provided to HMRC stating the total calculated value of the non-cash benefits provided by the company and the calculated national insurance value that the company will need to pay to HMRC for the tax year.

When is payment due?

The deadline for payment of National Insurance stated on P11d(b) form is by 22 July following the end of the tax year.

What if my company already payrolls any benefits?

Even if you have payrolled employee benefits, the company will still need to complete P11d(b) reporting and make the necessary payment of the National Insurance on the P11d(b).

What if I don't want my employees to have to pay tax on their non-cash benefits?

Firstly, it is worth checking you are maximising your tax-free benefits. For other, taxable benefits, you can choose to enter into a PAYE Settlement Agreement (PSA),  with HMRC where the company pays one annual payment to cover the tax and National insurance on benefits and certain expenses that they have given their employees, meaning that P11d and P11d(b) reporting and payment is not required.

What do I need to do next?

If you think you have provided non-cash benefits to employees during the tax year ended 5 April 2020, and would like our assistance with this process then please get in touch by 30 June 2020 to ensure you don’t miss the deadline of 6 July 2020. 

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