Employers will generally already be aware of the requirement to report to HM Revenue & Customs (HMRC) the benefits and expenses provided to employees and directors each tax year on forms P11D and P11D(b). The deadline for submitting these forms for the 2021/22 tax year (and providing a copy to employees) is 6 July 2022. Failure to submit the forms by this date will potentially lead to a penalty.
Any penalty for the late submission of form P11D(b) is charged with reference to the number of P11D’s due for the year – £100 per every 50 employees (or part of 50) per month or part month until the form is submitted.
In addition to late filing penalties, it is more important to be aware that penalties for completing an incorrect form P11D can be up to £3,000 per form, so it is essential they are right!
Changes to the reporting procedure going forward
From 6 April 2022, HMRC have made changes to the reporting procedures for benefits provided to employees. Up to 5 April 2022 an employer has been able to use an interactive PDF version of form P11D to enter details of reportable benefits and expenses for each employee. This interactive form could then be printed and submitted in the post. Alternatively employers could use HMRC’s dedicated P11D online service.
Both of these options have now been discontinued and with effect from 6 April 2022 employers will have to complete and submit benefits and expenses returns through their “PAYE online for employers” accounts or by using commercial software. The only exemption is for employers who are unable to access HMRC’s online services.
The new service will allow P11D submissions for up to 500 employees and can also be used to report employees using company cars.
Change to Class 1A National Insurance
An employer is liable for Class 1A National Insurance Contributions (‘NIC’) on taxable benefits, at 13.8% for 2021/22, as reported on the employers declaration form P11D(b). With effect from 6 April 2022 the Class 1A NIC rate will increase to 15.05% for the 2022/23 tax year.
If you would like more information or if you require our assistance completing P11D or P11D(b) forms please speak to your usual contact at the firm.
Our Current working arrangement – We remain ‘Open for business’
Our staff have now returned to mainly office based working, whilst continuing to work from home at other times. They can still be contacted in the usual way either via email or by calling the office number where reception will divert your call to the appropriate staff member.
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