Employers who provide benefits or cover expenses for their employees will need to submit P11D forms to HMRC by 6 July 2016.
P11D forms are used to provide information to HMRC on benefits and expenses that employees receive during the tax year.
Employers have to pay Class 1A national insurance on all the expenses and benefits provided by 22 July 2016 (or 19 July 2016 if paying by cheque).
Some of the most common benefits and expenses include:
- Company cars
- Travel and subsistence
P11Ds are obligatory for employees who receive benefits in kind and earn a rate of more than £8,500 a year. The same applies for directors unless they are:
- Working full-time with no material interest in the company
- A director of a charity or non-profit making organisation
P11Ds are not required if all benefits and expenses have been taxed through payroll.
All records must be accurate and that P11D forms are correct. Employers should keep the following:
- Dates and details of benefits and expenses provided
- Information used to calculate the figures on P11D forms
- Any employee contributions
Information must be kept for 3 years from the tax year they relate to.
Deadlines and Penalties:
The return date to submit P11D form for the 2015/16 tax year is 6 July 2016. Failure to do so will result in a penalty of £100 per 50 employees for each month or part month if your P11D forms are late to HMRC.