As an employer, if you provide expenses or benefits to employees or directors, you may need to tell HM Revenue and Customs (HMRC) and pay tax and National Insurance on them. The means of reporting these details to HMRC is on a P11D and P11D(b) form. The P11D is a statutory form required by HMRC from UK based employers detailing the cash equivalents of benefits and expenses that they have provided during the tax year to their directors and employees. Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
The deadline for reporting these details to HMRC for the tax year 2018-19 is on or before the 6th July 2019. An employer will get a penalty of £100 per 50 employees from HMRC for each month or part month the P11D(b) is filed late. The employer needs to ensure that employees employed on 5th April 2019 receive their P11D / P9D by 6th July 2019. The deadline for the employer to submit payment to HMRC for the liability for Class1A National Insurance owed on benefits or expenses is 22nd of July (or 19th July if you pay by cheque).
Examples of expenses and benefits include:
Some business expenses or benefits do not need to be reported to HMRC such as business travel, business entertainment expenses, telephone bills and uniform and tools for work.
BrightPay can produce a P11D for sending to HMRC after year end, which includes your Class 1A NICs declaration and details of the expenses and benefits provided including cash equivalents. If the P11d(b) has been already submitted to HMRC from BrightPay and amendments have to be made you must submit using a paper form.
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