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Is a P11D and P11D(b) due in this instance?

Is a P11D and P11D(b) due in this instance?

I have taken on a new limited company client and I've noticed that the previous accountants ticked the box on the P35 Employer's Annual Return (for the year ended 5 April 2011) that a P11D was not due.  The Director was the sole employee.  However, in that particular year, his salary was a lowly £6000 per year.  But, in addition, he also received a car benefit of £7012.  Surely, both combined, means that both a P11D and P11Db (upon which Class 1A NIC of £897.54 would now be due) should have been submitted to HMRC?  If so, what penalty would now be due?  I am no PAYE expert, so I missing something here?


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24th Feb 2012 16:53

BIK for director

Yes, there is a benefit here, and no apparent reason why it should not have been declared - the £8500 limit refers to salary plus benefits, and does not in any case apply to directors.

The penalty for late P11Ds can be as high as £300 per return, increasing to a daily penalty of £60, but it is not fixed & can be mitigated. A phone call to HMRC (with no details) might be helpful!

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