Talk to the Taxperts

01382 312100

It’s Time To Complete Forms P11D

The deadline for employers to complete forms P11D to report benefits or expenses provided to employees and directors is fast approaching – forms for the year ended 5 April 2022 are due for submission to HMRC, with a copy given to employees, by 6 July 2022. The process to gather information for returns can take some time so it is essential this is not left until the last minute.

Employers are required to pay Class 1A National Insurance Contributions (NIC) through form P11D(b) on taxable benefits and expenses provided, with payment due by 19 July (or 22 July for electronic payments), whilst Income Tax is payable by the employee.

Typical employee benefits and expenses which should be reported on a P11D include:

  • Private medical insurance
  • Company cars, vans, and fuel
  • Interest free or low interest loans
  • Staff entertaining if above £150 per employee
  • Assets provided to the employee for personal use

You do not need to report or pay tax on ‘trivial’ benefits. In order for a benefit to be considered ‘trivial’, all of the following must apply:

  • It cost £50 or less to provide
  • It is not cash or a cash voucher
  • It is not a performance reward
  • It is not given under the terms of the employee’s contract

Failure to submit your P11D(b) forms will result in a penalty of £100 per 50 employees for each month or part month that the forms are late. Penalties and interest will also be charged for late payment.

If you would like any support or advice with the completion of the forms, or the calculation associated with Class 1A NIC, please get in touch with your local office contact, email [email protected] or call one of our offices.

Latest News

View all latest news

June 30, 2022

How To Help Your Construction Customers Reduce Their Tax Liability

Along with the recent increases in the cost of living, commercial building projects have seen significant increases in costs in terms of materials, transport, and labour and as…

June 2, 2022

Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates published by HMRC took effect from 1 June 2022. With many employees left  short-changed within days of the rates in March being…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise

acca
CA
icaew
the-charteded-institute-of-taxation-logo

2020-innovation
cherries
ACC 2019 LOGO Finalist