Will you be ready for the P11D deadline?

By James Nadal | 5th June 2015 | 14 min read

Every year UK businesses should submit a P11D form (or P9D for employees earning less than £8,500) to HMRC for each employee that has received taxable benefits during the previous tax year.   A P11D form must also be provided to individual employees detailing the benefits they have received and tax due.

Examples of taxable benefits include Private Medical Insurance, Company Cars and Travel Expenses and one additional form, the P11D (b), must also be submitted to declare the overall amount of Class 1A National Insurance contributions (NICs) due.

Did you know?

You must keep a record of all expenses and benefits given to employees for up to 3 years.  Your records should show that you have reported the information accurately and that your P11D forms are correct.

Don’t miss the deadline

The date when P11D submissions must be with HMRC is 6th July 2015.  Make sure your submissions aren’t late or you will face a fine of £100 per 50 employees for each month or part month that a return remains outstanding.  

Payment of Class 1A NICs should reach HMRC no later than 22nd July.

Submitting returns

The fastest, easiest and most secure way to submit your returns is electronically.  Quality of returns is extremely important to ensure they are not rejected by HMRC.   Any incorrect P11D forms must be re-submitted on paper even if the initial return was made electronically.   You may also be charged a penalty if you carelessly give inaccurate information to HMRC which results in either:

Not paying enough tax

Over-claiming tax reliefs 

Using a specially designed software such as IRIS P11D Organiser will also ensure that the often complex calculations are performed correctly and that the returns contain accurate information so are accepted first time.   

If you have already kept track of employee benefits in an Excel spreadsheet then importing these to your software package will help save you lots of time

Another way to save time is to ensure that your benefit information can be rolled forward each year and that you can input data when required throughout the year (to prevent a last minute rush!)

For more information on IRIS P11D Organiser or to arrange a free online demonstration please call the IRIS team on 0344 815 5677.