If you run a business, you might provide benefits, or non-exempt expenses, to some or all of your employees.
If this is the case, then the annual P11D form needs to be completed and sent to HM Revenue & Customs (HMRC) before 6 July 2019.
In order to complete the form, you will need to know what to report and if you need to pay tax and National Insurance (NI) on the benefits or expenses.
A P11D is a form used to report benefits provided and expense payments made to employees, by employers that are not putting it through the payroll.
The annual form allows businesses to report benefits that employees have received from their employer in addition to their salary, for example, company cars, health insurance, living accommodation and beneficial loans.
There are some benefits that can be provided tax-free, such as the provision of a mobile phone, social functions for staff and other ‘trivial benefits’, although there are various conditions that need to be met first.
Understandably, the whole process of filling out the forms for P11D poses a significant burden for business owners and managers.
To further complicate the task, the rules governing the taxation of different expenses and benefits change regularly and each is subject to its own separate rule.
Therefore, it is important that employers plan ahead to ensure they do not find themselves struggling with completing and submitting these complex forms by the July deadline.
For the full list of expenses and benefits that you need to report, please click here.
For professional advice on this and other payroll, tax and accountancy-related matters, please contact Grunberg & Co today.