Small business and tax blog

Employers should remember that the filing date for P11D returns with HM Revenue and Customs is 6 July. This is also the date by which employees must be given a copy of their P11D information.

P11D returns are normally needed where employees earning over £8,500 per year, or company directors, receive any benefits or expenses payments from their employer.

Common benefits include a company car, medical insurance, living accommodation or interest-free loans.

Common expenses payments include home telephone, travel and subsistence.

Employers who can satisfy HM Revenue & Customs that they only pay employees for expenses that are incurred wholly, exclusively and necessarily in carrying out their job may be given a dispensation, which removes the need to report details of expense payments.

The P11D form can be submitted on paper or online. Unlike the P35, there are no incentives for filing this form online, other than speed and the immediate feedback that the return has been received.

Although the filing date for P11D returns is 6 July, HMRC do not charge penalties if the return is filed by 19 July.

After this date, penalties start to be incurred at the rate of £100 per month for companies with up to 50 employees. However, this penalty cannot be more than the Class 1A National Insurance payable, which may in some cases be nil.

Any Employers Class 1A National Insurance arising from the P11Ds should be paid by 19 July, or 22 July if the payment is made electronically. Payment by cheque should be made using the payslip that is sent out to all relevant employers with the P11D form. Electronic payments should have ‘0813’ added to the standard payment reference, so that HMRC know that the payment relates to the P11Ds for the previous tax year, rather than the monthly payment for June 2008.

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