As we are approaching the reporting of expenses and benefits in kind for the 2022/23 tax year. We wanted to highlight an important employer development – the online P11D submission.
For existing employers who already submit the P11D and P11D(b) returns online, there is no change.
Please note – for employers who have submitted paper returns in previous tax years, this has changed as of the 6 April 2023. You will now be required to submit your P11D and P11D(b) returns online via an approved HMRC PAYE software.
HMRC has published electronic versions of the P11D and P11D(b) forms on GOV.uk, which will assist employers and agents when submitting their forms electronically.
What is a P11D?
A P11D is a form that must be submitted to HMRC by an employer/agent for each member of staff (including directors) that receives certain benefits and expenses considered taxable by HMRC.
The form enables HMRC to calculate how much an employer must pay in Class 1A National Insurance contributions (NICs), in addition to how much PAYE is due from the employee on the benefit.
What should be included on the P11D form?
The following list is not exhaustive but includes the types of benefits typically reported.
- Company car/fuel
- Company vans (provided for personal use)
- Loans for season tickets (travel)
- Professional/private memberships
- Employer loans over £10K (where no/low interest charged)
- Health and medical insurance; dental insurance
- Self-Assessment fees paid by the company
You are not required to include any allowable business expenses on your P11D. This includes items such as:
- Office materials & stock
- Business travel & entertainment expenses
- Costs of your business premises, e.g. heating, lighting, and business rates
- Training courses – related to work
Do I need to complete a P11D if there are no expenses and benefits to report?
You will not be required to complete a P11D or P11D(b) if there are no expenses and benefits in kind to report. If in previous tax years you have submitted a P11D or P11D(b) you are still obliged to confirm to HMRC that there are no benefits in kind to report and no Class 1A National Insurance to pay by submitting a NIL P11D(b). This ensures your employer has no benefits to report for the tax year.
When is the P11D and payment of the Class 1A NIC due?
The P11D submission for the tax year (6 April 2022 – 5 April 2023) is due by the 6 July 2023. And, any tax due on the benefits provided to employees, must be paid by 22 July 2023.
Penalties to avoid
It is essential that the correct information is provided and filed on time. A late submission of the P11D is subject to a penalty of £100 per 50 employees, per month, for each month that the return is late. And, you can receive a penalty for late payment to HMRC too. There is also a penalty for making an incorrect return, or for deliberately submitting incorrect information. This penalty is a maximum of £3,000 per form.
We can help you
Our dedicated payroll team at Kingston Burrowes has extensive experience helping and supporting hundreds of businesses with their payroll and supporting forms, such as the P11D. To explore how we can support you, simply get in touch.