Do you receive or pay your staff expenses or benefits in the year, do these employees earn over £8,500 a year or are they directors?
Then by law you need to complete and submit a P11d form to HMRC for each employee/director that has received the benefits and a P11d(b) to summarise the class 1A NIC due.
A P11D is the form to declare the benefits in kind – items which are received/paid from the company in addition to normal salary.
KEY DATE: P11d Forms are to be submitted by 6th July for each employee
In the form you will need to enter the total value of any expenses, facilities and benefits that have been paid during the year to employees, or their family or household.
The most common examples include:
- Non-business travel and entertainment expenses
- Employment benefits – Gym Memberships/health insurance etc.
- Car and fuel benefits
- Assets provided to an employee that have significant personal use
- Directors beneficial loan or beneficial loans to employees
Some of these benefits will result in a Class 1A NIC charge to the company, if there is any Class 1A NIC to be paid this needs to be paid by July 22nd (or 19th if by cheque).
NEW for 2016/2017
Prior to April 2016 expenses did not need to be declared on a P11d if you had a valid dispensation in place.
However this has now been replaced by an exception system, you do not need to apply for the exemption system you just need to make sure you are either paying back the employees actual costs or pay a flat rate to employee as part of earnings (either a benchmark or a special HMRC approved rate)
The exemption will then be available for business expenses and these will no longer need to be declared on the P11d, such as:
- Business travel
- Phone bills
- Business entertainment expenses
- Uniform and tools for work
- Fees and subscriptions
What do I need to include on a P11d?
In order to complete your P11d you will need the following details
- your employer PAYE reference
- your employee’s name
- your employee’s National Insurance number, date of birth and gender
- the list price for a company car if you’re reporting one
- details of all benefits provided and any employee contributions made
What is a P11d(b)?
A P11d (b) is a summary of your P11ds, showing the total of Class 1A NIC due to HMRC from your company. A P11d (b) will need to be submitted if you have one or more P11d to submit.
4 Steps for your P11d (b)
- Enter total value of expenses and benefits provided during the year from the P11d forms
- Adjust this total for expenses and benefits for which Class 1A NIC are not due
- Calculate your Class 1A NIC
- Complete declaration on P11d(b)
When do I not need a form P11D?
If there have been no expense payments or benefits to an individual you will not be required to submit a P11d, however you will need to check that you have not informed HMRC that a P11d is due via PAYE, in which case you need to submit a nil return.
If you have submitted a P11d in previous years and one has been issued to you for the current year you will need to complete a nil return and inform HMRC that you no longer need to submit
Deadlines and Penalties:
The filing deadline for the P11d(b) form is 6th July.
If HMRC do not receive the return by 19 July a penalty will be incurred. Penalties will accrue for each month (or part month) that a return remains outstanding.
Penalties will be calculated at £100 per 50 employees for each month/part month.
You will initially receive reminders from HMRC that your P11d is overdue when it has not been received by 19 July – after this you will only receive a penalty notification when your return is 4 months overdue and you would have already incurred a minimum of £400 penalties so it is important to get your returns submitted by 19 July at the very latest!
If you would like any help with completing your P11ds or to find out if you are required to complete one then please contact us: 01273 739592 firstname.lastname@example.org