P11D Forms: An Idiots Guide to P11d’s
Do you receive or pay your staff expenses or benefits in the year to employees or directors?
Then by law, you need to complete and submit a P11d form to HMRC for each employee that has received the benefits and a P11d(b) to summarise the class 1A NIC due.
KEY DATE: P11d Forms are to be submitted by 6th July for each employee
In the form you will need to enter the total value of any expenses, facilities and benefits that have been paid during the year to employees, or their family or household.
The most common examples include:
– Reimbursed expenses
– Employment benefits – Gym Memberships/health insurance etc.
– Business entertainment expenses
– Car and fuel benefits
– Directors beneficial loan
Some of these benefits will result in a Class 1A NIC charge to the company, if there is any Class 1A NIC to be paid this needs to be paid by July 19th (or 22nd for cleared electronic payment).
What do I need to include?
Details that must be included on each P11d:
– your employer reference
– your employee’s name
– your employee’s National Insurance number or date of birth and gender
– the list price for a company car if you’re reporting one
– if you complete the ‘total cash equivalent of car fuel provided’, also complete the ‘total cash equivalent of cars provided’
– if you provide a beneficial loan to an employee you’re reporting, also complete ‘cash equivalent of loans’
What is a P11d(b)?
A P11d (b) is a summary of your P11ds, showing the total of Class 1A NIC due to HMRC from your company. If you have one or more P11d to submit you are also required to submit a P11d(b).
4 Steps for your P11d (b)
- Enter the total value of expenses and benefits provided during the year
- Adjust this total for expenses and benefits for which Class 1A NIC is not due
- Calculate your Class 1A NIC
- Complete declaration on P11d(b)
Can I remove the need to submit a P11d?
If you are declaring certain benefits on a P11d for which no class 1A NIC is due it is possible to apply for a Dispensation – removing the need to report business expenses and benefits. Once in place, the dispensation will only cover the expenses and benefits applied for on the dispensation application, there will then be no need to complete a P11d/P11d (b) for the expenses covered by the dispensation. You will need to refer to the HMRC website to confirm that your expenses can be covered by a dispensation. http://www.hmrc.gov.uk/payerti/exb/schemes/dispensation.htm#2
When do I not need a form?
If there have been no expense payments or benefits to an individual unless you have informed HMRC that a P11d is due via PAYE, in which case you need to submit a nil return.
If your business receives a letter from HMRC for P11D for 2020/21 Tax Year please do not ignore it. HMRC will expect a submission even if this is a NIL return.
Deadlines and Penalties:
The filing deadline for the P11d(b) form is 6th July.
If HMRC does not receive the return by 19th July a penalty will be incurred. Penalties will accrue for each month (or part month) that a return remains outstanding.
Penalties will be calculated at £100 per 50 employees for each month/part month.
You will initially receive reminders from HMRC that your P11d is overdue when it has not been received by 19 July – after this you will only receive a penalty notification when your return is 4 months overdue and you would have already incurred a minimum of £400 penalties so it is important to get your returns submitted by 19 July at the very latest!