P11d’s

Do you employ staff? 

Do they have expenses or benefits? 

If so, you might have to submit P11d forms to HMRC.

What expenses and benefits are included on P11d forms?

Travel expenses

Entertaining staff

Staff gifts

Health insurance

Company cars

Child care payments 

There are different rules for what you have to report and pay depending on the type of expense or benefit that you provide.

Are there any exemptions?

You don’t have to report certain business expenses and benefits like business travel, phone bills, business entertainment expenses, uniform and tools for work, if you are paying a flat rate to your employee as part of their earnings - this must be either a benchmark rate or a special (‘bespoke’) rate approved by HMRC.

You don’t need to apply for an exemption if you use a benchmark rate, only if you use a bespoke rate. 

What do I need to do?

At the end of the tax year you’ll need to submit a P11d form to HMRC for each employee you’ve provided with expenses or benefits.

You’ll also need to submit a P11D(b) form if you’ve submitted any P11D forms, paid employees’ expenses or benefits through the payroll or if HMRC have asked you to.

This form tells HMRC how much Class 1A National Insurance you need to pay on the expenses and benefits you’ve provided.

What if I pay tax on the expenses through my payroll?

You do not need to submit a P11D form for an employee if you’re paying tax on all their benefits through your payroll.

But you will still need to submit a P11D(b) form so you can pay any Class 1A National Insurance you owe.

When is the deadline

The deadline is 6th July.

By this date you must

Submit your forms to HMRC 

Give your employees a copy of the form

Tell HMRC the amount of Class 1A NI you owe

You must pay your Class 1A national insurance by 22nd July.

What if I don’t?

You may be charged a penalty if you don’t submit your forms and payment on time.

Do I need to keep any records?

You must keep a record of all expenses and benefits you provide to your employees as HMRC may ask to see evidence.

Records must be kept for 3 years from the end of the tax year they relate to.

Can you do it for me?

Of course! This can be along side payroll services or as a stand alone service.

Call today on 0115 891 0098 or send an email to jo@joroome.co.uk