Anyone who gets ‘benefits’ as well as working will need to have a firm submitted to the Government before July 6, experts have warned. Employers will need to submit a P11D form if their employees are receiving benefits of any type on top of their salary.
As well as having to issue P60s soon, employers will also need to send out P11D and P11D(b) forms over the next few weeks. A P11D form is used to report benefits provided to employees, including health insurance, company cars or company loans and travel expenses. Basically, anything that goes beyond a basic salary.
A P11D(b) form is a declaration from an employer providing the amount of Class 1A National Insurance contributions due on the benefits provided to the employees. Class 1A contributions must be paid by employers on the work benefits they give their employees. These need to be paid by July 22 each year for the previous tax year, or July 19 if you’re paying by post.
Both the P11D and P11D(b) forms need to be submitted by July 6. Employers have to submit the P11D(b) even if they’ve processed benefits through payroll, provided that Class 1A NI is due. These forms also have to be submitted for each employee who has received benefits.
Additionally, if HMRC has sent a P11D(b) reminder and you don’t owe any Class 1A NI, you still need to submit a “nil return” to avoid penalties. Failure to submit the P11D form will lead to a fine of £300, and an extra £60 for every day after that. If you submit the P11D(b) late, you’ll incur a £100 fine per 50 employees for each month or part month your P11D(b) is late.
