What is a P11D?
PARTNER WITH EXPERTS IN PAYROLL.
P11D forms are there for employers to declare any expenses and benefits (or benefits in kind) that they have provided to their employees over the course of the year. A P11D form for each employee should submitted to HM Revenue and Customs (HMRC) at the end of each tax year. Benefits in kind refer to any benefits that an employee, or director, receives that is not included within the salary or wage that they receive.
Who needs to file a P11D?
So who actually needs to file a P11D? It is a legal requirement for every employer providing benefits in kind to file a P11D for each employee earning over £8500 per year, it is not the employee’s responsibility to submit a P11D.
The deadline for submitting your P11D online to HMRC is the 6th July, following the end of that tax year. Similarly, the deadline for giving employees a copy of the information of your forms, and informing HMRC the amount of Class 1A National Insurance you owe (using a P11D B) is this same date.
What needs to be included in a P11D form?
It can be difficult to know what to include on your P11D submission, but a general guide to go by is to include the items that the company incurs costs for, or provides assets for, and that the employee benefits from.
Some of the expenses and benefits may include (but are not limited to):
- Company cars
- Travel expenses
- Assets provided to an employee used for personal use
- Payments made on behalf of an employee
- Vouchers / Credit cards
- Medical treatment / insurance
- Living accommodation
What is a P11D (b)?
Along with your P11D, you will have to submit a P11D(b) form. This form is used to declare the amount of Class 1A National Insurance due on the expenses and benefits, and these must be paid by 22 July for the previous tax year.
If you fail to file your P11D(b) before 6th July, or it is filed incorrectly you could face various fines and penalties. You’ll get a penalty of £100 per 50 employees for each month or part month your P11D submission is late, up to the period of 12 months. After 12 months, this penalty amount may increase.
Failing to submit your P11D, you could face a penalty up to the value of £300 and daily penalties up to £60 per day.
If the P11D(b) form is incorrectly submitted, you will face a penalty based on the potential lost revenue (PLR). For an incorrect P11D submission, penalties can be up to £3000.
Talk Staff Payroll P11D Service
As part of the payroll service provided by Talk Staff Payroll, we can produce and handle the entirety of the P11D process, so that you don’t have to worry. Making sure you state every relevant expense and benefit, for each of your employees can be a tricky and time consuming task. Doing it right, and on time is a difficulty many businesses face every year. That’s where Talk Staff Payroll are here to help. Our experienced team of experts deal with all aspects of payroll on a daily basis, and know what is required of you to adhere to legislation each and every time.
Some of the aspects we handle when it comes to your P11D submission are as follows:
- Preparation of your P11D and P11D(b) forms, including submission to HMRC
- Calculation of Class 1A National Insurance payments
- Provide a simple data collection method for capturing all benefit information including cars, health, medical and other benefits
- Produce and calculate all P11d and the P11d(b) ahead of verification and submission
- Provide verification details to the client for sign-off & provide any adjustments as required
- File the P11d and P11d(b) submissions with HMRC ahead of the deadline day