P11D Forms? What and when?
You may have heard the term P11D mentioned or perhaps received a notice from HMRC that you need to complete them. But what are they and when are they due?
P11Ds are the forms that need to be completed and returned to HMRC to report to them ‘payments’ made to employees that do not go through the PAYE system. These may include provisions of living accommodation, cars and fuel, payments made on behalf employees, private medical care, etc.
These may be taxable on the individual and the company may have to pay Class 1A national insurance contributions.
The deadline for filing the 2015/16 returns of benefits and expenses paid to employees (P11D forms) is 6 July 2016, and any NIC due is payable by 19 July 2016.
There can be significant penalties for filing incorrect returns, so they need to be completed with great care. Remember that unless the employer holds a dispensation from HMRC, employees’ and directors’ reimbursed expenses (such as travel and subsistence) also need to be reported, although these won’t be taxable.
As with anything to do with HMRC, do not leave it until the last minute. If you aren’t sure if you have to fill them in, get confirmation from HMRC. And if you do have to fill them in but are not sure how to go about it, then ask your accountant and get the help you need.