Reminder: Understanding the P11D Deadline and Submission

Submitting the P11D form is an important responsibility for UK employers. Compliance with HMRC requirements is important to avoid penalties. With this comprehensive guide, we’ll lead you through the process of completing P11D paperwork, covering everything from P11D deadlines to fines.

What is a P11D and When is P11 D Deadline?

Here’s a quick definition: A P11D is a tax form UK firms use to report and declare the cash equivalents of benefits and costs paid to employees in addition to their regular salary. P11Ds are submitted after the tax year has concluded to declare any benefits accumulated during that period.

This form is a document used by UK firms to report benefits and costs granted to employees and directors. This covers business automobiles, health insurance, travel, entertainment, and other expenses. The P11D form must be submitted correctly and on time to avoid penalties and comply with HMRC laws.

The goal of the P11D form is to ensure that the correct income tax is computed and paid on any taxable benefits provided to your employees.

What is the P11D (b) Form?

The P11D(b) form is a supplemental declaration that goes with the P11D form. Owed on July 6th of each tax year, it summarises the total Class 1A National Insurance contributions owed on all benefits and costs reported on the P11D forms.

Employers must submit both forms simultaneously to ensure that the appropriate taxes are paid. Payment for Class 1A NICs is due on July 22nd (online) or July 19th (cheque).

Key P11D Deadlines and Responsibilities 

How to Report?

Reporting is handled by completing and submitting forms P11D and P11D(b).

P11D – completed by each employee to disclose the perks and expenses supplied. HMRC uses this to change the employee’s PAYE code. The employee will need this to file their tax return, if appropriate.

P11D(b) is the employer’s declaration that all P11Ds are correct. This also validates the total Class 1A NICs owed (estimated at 13.8% of total benefits granted).

Deadlines for submitting P11D and P11D(b) forms in 2023/2024

For the tax year 2023/2024, the deadline for submitting P11D and P11D(b) forms is July 6, 2024. To avoid penalties, businesses must mark this day on their calendars and ensure that all required forms are completed and submitted on time.

In the UK, the deadline for submitting P11D and P11D(b) forms is normally July 6th, following the end of the tax year. You must provide P11D forms to HMRC for each employee who received benefits during the tax year.

For example, submitting a P11D in July 2024 will reflect benefits earned between April 6, 2023 and April 5, 2024. HMRC will then adjust employees’ tax codes for the current tax year to reflect the benefits received in the previous year.

Note: If you submit any P11Ds (or payroll benefits), you must also file a P11D(b) before July 6th.

Submit Your P11D Form: Step by Step Process

1. Get All the Information

First of all, employers have to gather all the details about the perks they give their employees in the tax year. This information includes the value of every perk, any expenses employers pay, and how much National Insurance you owe.

2. Fill in the Form

You must now complete the official P11D form from HMRC. You can access this information on the HMRC website or your payroll software.

The form will be separated into parts for various advantages and expenses. The benefits you’re reporting on will determine the details you need to include.

3. Work Out National Insurance

After you’ve completed the P11D form, you have to calculate the entire amount of Class 1A National Insurance contributions required for the benefits supplied to your employees.

This is typically calculated at a rate of 13.8% of the cash equivalent value of the benefits.

4. Declare Correctness and Submit to the HMRC

You will be required to sign a declaration acknowledging the accuracy of the information and accepting responsibility for any resulting tax liabilities.

Then, to submit your forms, you can utilise HMRC’s online portal (the recommended and most expedient approach) or send a paper copy.

5. Provide Details to Employees

Once you have submitted the form, you have to send copies of the P11D form to each appropriate employee. You may also be required to pay Class 1A NICs based on the total cash equivalents declared on the P11D(b).

This ensures that employees understand the benefits and expenses that have been recorded on their behalf.

6. Pay Class 1A National Insurance Contributions

Finally, you must pay the full amount of Class 1A National Insurance payments owed on the taxable expenses granted to your employees.

The payment deadline usually is on July 19th (or July 22nd if paying electronically).

P11D Late Filing Penalties

Late filing of P11D forms incurs a £100 penalty per 50 employees for each month of delay.

Late payments for any National Insurance Contributions (NICs) payable result in a 5% penalty charge beyond 30 days from the due date. This penalty increases to 10% after six months and 15% after 12 months, plus any accrued interest.

A penalty may apply if you present false information in your tax return, whether accidentally or deliberately, leading to underpaying taxes and claiming excessive tax breaks.

Frequently Asked Questions

When is P11D due?

The date for filing the yearly P11D and P11D(b) forms to HMRC is usually July 6th, following the end of the tax year. For example, for the tax year ending on April 5th, the P11D forms are due on July 6th of the same year.

Do I have to submit a P11D if no employee benefits are provided?

If you do not provide your employees with any taxable benefits or expenses, you may not need to submit P11D forms. Check if any modest expenses or benefits you offer are taxable, as these may also be exempt from P11D reporting.

What should be included in the P11D form?

Any reward (things or services) for which the company pays its employees must be included in the P11D form. The expenses and benefits that need to be filed with HMRC are as follows:

• Loan for railway tickets
• Company cars
• Health Insurance
• Assets are provided to employees for their personal use
• The corporation paid the self-assessment fees
• Non-business travel expenditures
• Non-business entertainment expenses
• Other loans

What happens if I miss the deadline to submit the P11D form?

Missing the deadline may result in penalties from HMRC. It is crucial to submit the form on time to avoid potential penalties. If you see you’ve missed the deadline, submit the form right away and contact HMRC to explain the issue.

How Can Outbooks Help You with P11D Process and P11 D Deadline?

Outbooks specialises in handling all aspects of P11D and P 11D (b) submissions, making your life easier by:

• Ensuring accurate and timely submissions.
• Reducing the administrative operations.
• Providing expert advice and support throughout the process.