The deadline for submitting your P11D forms to HM Revenue & Customs (HMRC) is 6 July 2024. It is crucial for all employers to understand their responsibilities regarding this essential tax form. Whether you are a seasoned business owner or new to employment taxes, this guide will help you navigate the essentials.
What is a Benefit in Kind?
A Benefit in Kind (BIK) refers to any non-cash benefit provided to employees that holds monetary value. These perks go beyond regular salary and wages and can include company cars, private health insurance, interest-free loans, and gym memberships. While these benefits can boost employee satisfaction, they are considered taxable by HMRC.
Why is the P11D Form Required?
The P11D form is required by HMRC to report benefits in kind. Employers must complete a P11D for each employee who has received any taxable benefits or expenses during the tax year. This ensures the correct amount of tax is paid on these benefits.
Types of Benefits to Include on the P11D
Here are some common benefits that should be reported:
- Company Cars and Fuel: Report any company cars provided to employees, along with any fuel for personal use.
- Health Insurance: Include private medical insurance paid for employees.
- Interest-Free or Low-Interest Loans: Any loans exceeding £10,000 must be reported.
- Living Accommodation: Report the value of any housing provided to employees.
- Gym Memberships: Free or subsidised gym memberships are taxable benefits.
Deadline for P11D Submission
The deadline for submitting this year's P11D forms is 6 July 2024. Missing this deadline will result in a penalty of £100 per 50 employees for each month or part month your P11D is late. Additionally, you will incur penalties and interest if you are late paying HMRC.
Paying Class 1A National Insurance
Many benefits require a payment by the employer of Class 1A national insurance. This is basically a substitute for the employer's national insurance that would have been paid if the employee had received the same monetary value through payroll rather than as a benefit.
This payment has to be made by 22nd July (or 19th July if paid by cheque) and, as mentioned, penalties and interest can apply if you're late paying.
Of course, if you are already 'payrolling' your expenses and benefits then you may have already paid all or most of the amount due.
Completing the P11D Form
Follow these steps to complete the P11D form accurately:
- Gather Information: Collect details of all benefits provided to each employee during the tax year.
- Use the Correct Forms: Ensure you're using the correct version of the P11D form for the relevant tax year.
- Accurate Valuation: Determine the cash equivalent of each benefit provided. HMRC provides guidance on valuing different types of benefits.
- Class 1A National Insurance: Calculate and report Class 1A National Insurance contributions using the P11D(b) form.
- Submission: Submit the completed P11D forms to HMRC by 6 July and provide employees with a copy of their individual P11D by the same date.
By staying informed and organised, you can ensure that your P11D forms are completed correctly and submitted on time.
If you need assistance or have any questions, don't hesitate to contact our team. We're here to help you navigate the complexities of tax compliance, allowing you to focus on running your business.