P11D forms – which cover perks and certain expenses given to company directors and employees – for the previous tax year (ending 5 April 2017) must be submitted to HMRC by 6 July 2017. As it can take a while to compile the correct information, it is vital this is done in good time rather than just before the deadline.

Employees have to pay tax on company benefits, and this is usually done either through an adjustment to their PAYE code or via self-assessment. On 6 April 2016, important changes were brought in that affect how expenses are reported.

Where an employer has collected tax on the benefits through payroll, there is no need to complete a P11D form. However, it is advised that employers inform their employees that the benefits have been payrolled in this way.

Employers must pay Class 1A National Insurance Contributions (NIC), calculated at 13.8%, on most benefits, and this is regardless of whether such benefits are payrolled or reported on the P11D. This liability and how it is calculated is covered on the P11D(b) form. Class 1A NIC payments are due by 19 July (or 22 July for cleared electronic payment). Because 22 July falls on a Saturday, it is advisable to make sure cleared electronic payment is completed by Friday 21 July (unless you have a means of making faster payments).

HMRC provides a toolkit for expenses and benefits, including a checklist designed to help employers and advisers ensure the forms are being completed in the correct way.

Please contact us for help with completing the P11D forms or calculating Class 1A NIC.

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BWB Accountants Surrey

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