P11D Deadline Looming
The forms P11D, which report employees and directors benefits in kind and expenses, are due for submission by 6 July 2008 for the year ended 5 April 2008. The process of tracking down the information can take some time so it is important that you don’t leave things until the last minute.
Some things to be aware of:
The benefit is based on a percentage of the list price plus accessories – not what the business paid for the car. The percentage is linked to the CO2 emissions of the car.
Provision of fuel
Employees provided with free fuel for private as well as business motoring will be assessed on a further benefit. This is calculated as a percentage linked to the CO2 emissions of the car and a set figure of £14,400 for 2007/08.
The set figure has increased to £16,900 for 2008/09. This is a good time to check whether or not the individual would be better off paying for their own private fuel. Don’t forget that the employer also pays 12.8% employer only Class 1A NIC on the value of broadly all benefits in kind so there is a saving for the business as well.
HMRC have issued the usual guidance to employers on the completion of the forms P11D together with tips on how to avoid errors based on last years forms P11D.
If you would like any help with the completion of the forms P11D or a reminder of the information we require to complete the forms on your behalf please get in touch.