The forms P11D, and where appropriate P9D, which report benefits and expenses for both employees and directors for the year ended 5 April 2012, are due for submission to HMRC by 6 July 2012.
Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A national insurance contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.
The following is taken from an article on expenses and benefits contained in the recent Employer Bulletin. The article includes a list of common mistakes which include:
'The following is a list of common errors which are easily avoidable but delay processing and cause problems with employees tax codes each year:
- Submitting duplicate P11D information on paper where P11D information has already been filed online to ensure 'HMRC have received it'. This causes processing problems
- Using a paper form that relates to the wrong tax year - check the top right hand corner of the first page
- Not ticking the 'director' box if the employee is a director
- Not including some form of description or abbreviation, where amounts are included in sections A, B, L, M or N of the form
- Leaving the 'cash equivalent' box empty where you've entered a figure in the corresponding 'cost to you' box of a section
- Sending P11Ds when you've also ticked the box in Part 5 of form P35 (in your Employer Annual Return) to indicate that P11Ds are not due
- Where a benefit has been provided for mixed business and private use, entering only the value of the private-use portion - you must report the full gross value of the benefit. Not completing the fuel benefit where this applies. This means an amended P11D has to be sent in
- Completing the 'from' and 'to' dates incorrectly in the 'Dates car was available' boxes by showing the whole tax year. For example entering 06/04/2011 to 05/04/2012 to indicate the car was available throughout that year. If the car had been available in the previous tax year, the 'from' box should not be completed and if the car is to be available in the next tax year, the 'to' box should not be completed.'
If you would like any help with the forms P11D or the calculation of the Class 1A liability please get in touch.
Internet links: HMRC P11D guidance Employer Bulletin