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Reminder – P11d forms and types of benefits and expenses payments

Posted by: edwinsmith on May 8th, 2012

Expenses and benefits paid to employees during the year to 5 April 2012 are required to be entered on forms P11D and P11D(b).  These forms are due to HM Revenue & Customs (HMRC) by 6 July.

The resulting Class 1A National Insurance payment is due to HMRC by 19 July if paying by cheque or due into HMRC’s bank account by 20 July if paying electronically (22 July is a Sunday). HMRC do operate Faster Payment so the payment will take approximately 1 working day to clear if your bank operates Faster Payment.  If not, the payment is likely to take 3 working days to clear.

Penalties for late filing of the P11D and P11D(b) forms start at £100 for each month that the forms are late.  Penalties and interest may also be charged if you are late paying the Class 1A National Insurance.

P11ds are the annual declaration of any expenses payments, benefits and facilities provided to:

  • each employee or director earning at a rate  of £8,500 a year or more, and
  • each director earning at a rate of less than £8,500 a year, unless they are :

- a full time working director with no material interest in the company, or

- a director of a charity or a non- profit making concern

 The types of benefits and expense payments to include are as follows. 

  • Company credit card expenses
  • Car benefit - provision of company car to employee
  • Car fuel benefit - provision of fuel for private travel
  • Van and fuel benefit - provision of van for more than just incidental private use
  • Interest free loans including overdrawn director’s loan account - only for loans exceeding £5,000 in 2011/12
  • Private medical insurance
  • Expenses payments reimbursed to director or employee – including Travel and Subsistence (but not mileage allowances using the HMRC agreed rates), Entertaining and Other expenses.

Please refer to the 2011/12 P11d guide http://www.hmrc.gov.uk/guidance/p11dguide.pdf  more details on the above and other types of benefits that need to be disclosed.

If you require any assistance concerning P11d forms or tax implications of benefits that need to be declared then please contact us.

Filed under: PAYE