How Do I Submit P11D Form

Submitting P11D form is a crucial responsibility for employers in the UK. Ensuring compliance with HMRC regulations is essential to avoid penalties. In this comprehensive guide, we'll walk you through the process of submitting P11D forms, covering everything from what P11D is to deadlines and penalties.

P11D is a form used by employers to report employee benefits and expenses to HMRC. It is essential for employers who provide their employees with benefits in kind (BiKs) or reimburse their expenses. BiKs include perks like company cars, private medical insurance, and accommodation provided to employees. P11D form includes details about expenses or benefits such as:

• Company cars and fuel
• Health insurance
• Non-business travel expenses
• Non-business entertainment expenses
• Loans provided to employees
• Company assets provided or transferred to employees or directors that have significant personal use

There's also the P11D(b) form. The P11D(b) form is like a summary sheet that employers give to HMRC along with their P11D forms. It shows the total value of all the benefits and expenses they've reported for their employees. This form helps HMRC calculate how much Class 1A National Insurance contributions (NICs) the employer needs to pay based on the benefits provided to employees. It's important for employers to fill out and submit the P11D(b) form accurately and on time to make sure they pay the correct amount of NICs. You'll need to submit a P11D(b) form if:

• you've submitted P11D forms
• you've paid your employees' expenses or benefits through your payroll
• you've received a reminder from HMRC

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1. PAYE Online Service: Employers can use the HMRC's PAYE online service to submit P11D forms electronically. This method offers a convenient and secure way to report employee benefits and expenses.
2. Commercial Software: Employers can also use commercial payroll software specifically designed for submitting P11D forms. These software solutions streamline the process and help ensure accuracy in reporting.

HMRC no longer accepts paper P11D filings and thus, all submissions must be made online.

You should also give a copy of the P11D form to your employee. This helps them with their self assessment tax returns, review their tax deductions and/or allow them to prepare claims for tax relief.

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Employers must complete and submit P11D forms for each relevant employee by July 6th following the end of the tax year. Additionally, employers need to submit a P11D(b) form to HMRC by the same deadline. The P11D(b) form summarizes the total amount of Class 1A National Insurance contributions (NICs) due on all the benefits and expenses reported on P11D forms.

PAYE Settlement Agreements (PSAs)

If you have a PAYE Settlement Agreement (PSA) with HMRC, you need to make sure you pay any tax or Class 1B National Insurance amount that's due for the year 2023-24 by October 22, 2024. You don't have to report this amount on a P11D form.

For the tax year 2023/2024, the deadline for submitting P11D and P11D(b) forms is July 6th, 2024. It's crucial for employers to mark this date on their calendars and ensure that they complete and submit the necessary forms on time to avoid penalties.

What if I Have No BiKs or Expenses to Report?

If you have previously reported Benefits-in-Kind but this year you didn't give any benefits or cover any expenses, you can either:

1. Fill out a 'nil' return, which means you're telling HMRC that there were no benefits or expenses to report this time.
2. Let HMRC know online that you don't need to submit a return this year.

P11D Form Late Submission Penalty

Failure to submit P11D forms by the deadline can result in penalties from HMRC. If your P11D(b) form is late, you'll pay a penalty of £100 for every 50 employees, for each month or part of a month it's overdue. Additionally, if you're late in paying HMRC, you'll be charged penalties and interest.

Submitting your P11D forms accurately and on time is crucial for meeting HMRC regulations and avoiding penalties. By understanding what information needs to be reported, when to submit it, and how to do so correctly, you can ensure smooth compliance with HMRC requirements. Remember to mark the deadlines on your calendar and consider seeking assistance from small business accountants if needed. With proper attention to detail and timely action, you can fulfill your obligations as an employer and keep your payroll processes running smoothly.

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