Annual P11D Forms Can Now Be Submitted

Submission Deadline: 6 July 2022
Payment Deadline: 22 July 2022 Online

Are you an employer providing taxable benefits to employees?

The last tax year has now ended, meaning it’s time to complete your annual P11D forms for any expenses and benefits provided to employees and directors between 6 April 2021 – 5 April 2022.

 

What is a P11D form?

The P11D is used to report benefits provided to employees and expense payments by employers that are not included in the payroll process.
If you provide benefits or non-exempt expenses, you must be aware of the annual P11D form that needs completing and sending to HMRC by 6 July every year.

The form allows businesses to report benefits that employees have received from their employer in addition to their salary, for example:

• Company cars
• Health insurance
• Living accommodation
• Beneficial loans

 

Do I have to use the P11D form to report taxable benefits?

 

If you have taxable benefits and they are not included in payroll reporting, you must complete a P11D form for each affected employee at the end of the tax year.

 

What benefits are tax-free?

 

There are several tax-free benefits that can be given to employees, these can include:

• The provision of a mobile phone
• A social function for staff – if the total cost does not exceed £150 per head, per year.
• Trivial benefits – if it costs £50 or less to provide, it is not cash or a cash voucher, and it is not a reward for the employees’ performance or a term in their contract.
• Fees and subscriptions

 

If the benefits provided by your business meet the above criteria, you do not need to update HMRC via payroll or P11D or pay tax or NI on these benefits.

 

Do I have to pay anything?

 

Your P11D(b) form supports the P11Ds and tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided in the year.

Payment to HMRC for Class 1A National Insurance owed on expenses or benefits is due by 22 July.

If you believe you have provided expenses or benefits in the last tax year and need advice, don’t hesitate to get in touch.