P11Ds Due by 6th July: Everything You Need to Know
Following the end of the tax year, employers need to file P11D forms by 6th July and pay the resulting Class 1A NIC by 19th July to avoid penalties.
What is a P11D Form?
A P11D form is the form you use to submit your end-of-year declaration of employee expenses and benefits. It’s essential for reporting any benefits in kind or expenses provided to employees during the tax year. These benefits might include things like company cars, private medical insurance, or gym memberships.
Who Needs to Submit a P11D Form?
You need to submit a P11D form to HMRC for every employee to whom you’ve provided benefits in kind or expenses. This is mandatory even if the employee earns below the taxable threshold. The information on the P11D helps HMRC determine the taxable value of these benefits and ensures accurate tax calculations for your employees.
What is a P11D(b) Form?
If you send HMRC one or more P11D forms, you also need to submit a P11D(b) form. The P11D(b) form enables HMRC to see how much you’ll pay in Class 1A National Insurance on the benefits and expenses you’ve provided to your employees. This is a critical step in ensuring all tax liabilities are accurately reported and paid.
Common Benefits to Report
Here are some of the most common benefits that need to be reported on a P11D form:
Company Car: If you provide company cars to your employees, you need to report this as a benefit in kind.
Private Medical Insurance: Any private healthcare provided to employees must be declared.
Share Options: Shares or share options given to employees are considered taxable benefits.
Gym Membership: Subsidized or free gym memberships provided to employees must be included.
Low Interest Loans: Loans provided to employees at low-interest rates, especially if they exceed £10,000, are reportable.
Overdrawn Directors Loan Accounts: If directors have overdrawn loan accounts over £10,000, this needs to be reported.
Living Accommodation: If you provide living accommodation to employees, this too must be declared.
Key Dates to Remember
P11D Submission Deadline: 6th July
Ensure that all P11D forms are submitted to HMRC by this date. Late submissions can result in penalties.
Payment of Class 1A NIC: 19th July
Payments for Class 1A National Insurance contributions are due by this date. Timely payment is crucial to avoid interest and penalties.
Completing and submitting your P11D forms accurately and on time is essential to comply with HMRC regulations and avoid penalties. Make sure you review all benefits provided to your employees, complete the necessary forms, and submit them by the 6th of July. Don’t forget to submit your P11D(b) form and pay any Class 1A National Insurance contributions by the 19th of July.
By staying on top of these requirements, you ensure a smooth and compliant end to the tax year. If you need assistance with preparing your P11D forms or understanding your obligations, speak to us.
