What is a P11D?

These are items or services which employees and directors receive from your company/employer in addition to your salary. The most common items to be included on P11D forms are private medical healthcare and company cars.

As these benefits effectively increase your salary, there might be national insurance contributions that need to be paid on them. These national insurance payments are made by the company and the P11D form is intended to be a record from the employer to HMRC about benefits they have given to their staff in addition to salary.

When does it have to be submitted?

P11D forms must be filed by the 6th July and relate to all BIK  paid between the 6th April and 5th April the previous tax year (so P11D forms for this 6th July relate to BIK between 6th April 2019 and 5th April 2020). 

Late filing penalties

As with most reports to HMRC, failure to provide the information in the timescale can lead to some penalties. In this case, penalties start at £100 per month per 50 employees. If you go past November without filing the P11Ds then HMRC can add anywhere between 30-100% of the tax owed on top of the original payment – depending on the reason why the form has not been sent in.

What is exempt?

There are certain items that HMRC have said do not need to be reported. Most common are reimbursements for fees/subscriptions and business miles. Also, employers can provide 1 work mobile phone to an employee which doesn't need to be reported provided any contract is in the name of the employer/company.

How can Buckler Spencer help?

We can prepare and file P11Ds for your employers based on the information provided and ensure you know whether there is any additional national insurance tax to be paid. If you have any questions it is not too late to help for this year. Just get in touch and we are here to help.

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