A P11D is required for each employee (including directors) who received any benefits or expenses payments whatsoever from the company (including benefits provided to members of the director or employee’s family or household) during the year, with only the following two exceptions:-
1. The only benefits received by employees/directors were exempt from tax; and
2. All expenses were allowable business expenses covered by a statutory exemption.
From 6 April 2016, statutory exemptions for allowable business expenses replaced the previous system of dispensations. The responsibility for identifying expenses qualifying for the exemption falls on the employer and any non-qualifying expenses will need to be reported on forms P11D, regardless of whether they were previously covered by a dispensation.
P11D FILING & PAYMENT DEADLINES
- The statutory deadline for submission of forms P11D(b) and P11D is 6 July following the end of the tax year to which they relate.
- Each employee must be given a copy of their form by 6 July.
- Payment of the Class 1A NIC liability is due by 19 July if made by post or cash. If made electronically payment should be made by 22 July, or no later than the last working day if 22 July falls on a weekend or bank holiday. Interest is charged on payments made late.
P11D PENALTIES
- The maximum penalty for failing to meet the statutory deadline is £300 per form initially.
- Further penalties of up to £60 per form per day may be levied in extreme cases.
- The maximum penalty for submission of an incomplete or incorrect return is £3,000 per form, charged in addition to the penalties for delay.
- You may also be liable to prosecution if you make false statements.
- £100 penalty per 50 employees for each month or part month your P11D(b) (declaration form) is late. After 12 months a separate penalty of up to 100% of the NIC due may also be levied.
P11D Aide-Memoire
Please click on the link below for a checklist to ensure that the forms contain all appropriate details.
If any of the headings apply, we have detailed the information you should supply.
We have tried to be as comprehensive as possible but if you are in any doubt as to whether you are required to prepare a form or if a particular item applies, please ask us to advise you.
(For an article about the changes in the P11d regime since last year please click on this link…
https://www.ryecroft-glenton.co.uk/post/key-changes-to-p11ds/519)
