The deadline for submitting your P11D for the 2019/20 tax year is fast approaching. Let’s take a closer look at the what, when and how of this sometimes miscalculated HMRC form.

The P11D reports benefits in kind (BIK), the extra services and items that employees are given in addition to their salary. By 6 July 2020, employers should have filed the 2019/20 P11D, provided a copy to employees and also told HMRC the amount of National Insurance owed. Any tax due must be paid to HMRC by 22 July each year.

What does a P11D report?

In a nutshell, any item a company pays for that the employee benefits from needs to be included on the P11D. These expenses and benefits include:

  • Company cars
  • Loans for rail season tickets
  • Other loans
  • Health insurance
  • Assets provided to an employee that have significant personal use
  • Self Assessment fees paid by the company
  • Non-business travel expenses
  • Non-business entertainment expenses

Each of these benefits and expenses are recorded in one of 14 sections on the P11D form. For a breakdown of where to include the relevant data, see our previous P11D blog here.

P11D exemptions

Since 2016 the majority of business expenses incurred by employees are no longer recorded on the P11D. Exempt expenses include business travel, entertaining expenses, business credit cards and subscriptions/fees.

P11D penalties

If you miss the 6 July deadline, you have about a fortnight to put things right. After that, your company will incur fines of £100 per month (or part month) per 50 employees. This will be followed by reminders and details of the ongoing penalties. If HMRC believes you acted carelessly, deliberately misled or attempted to conceal your liabilities, penalties of 30-100% of the owed tax could be imposed.

What is the P11D(b) form?

The P11D(b) is an associated form that employers submit, summarising the detail of the P11D form completed and the Class 1A National Insurance owed for each employee.

Keeping your records up to date and reconciling your accounts frequently will help the smooth and accurate submission of your P11D. We have more information on our website.

If you have any questions about what should be included on your P11D, the experts at CRM can help. Please call us on 01865 379272.

Sage Accountant Partner Logoiris kashflowFreeagent