P11D: Time to tackle tax year end dutiesby
Ahead of the deadline for tax year 2021-22, Lora Murphy looks at the processes associated with P11Ds that payroll professionals and businesses should be aware of.
Payroll professionals will all agree that tax year end is one of the busiest times within the industry. There are several tasks that need to be completed, and stringent deadlines which must be adhered to.
One of the most time-consuming activities is that of P11D construction and submission. P11Ds are one of the methods used by employers to report benefits in kind that have been provided to employees throughout the tax year.
The deadline for providing employees with P11Ds and also for submitting them to HMRC is the 6 July following the tax year that is being reported on. HMRC must be notified of the total amount of Class 1A national insurance (NI) that an employer owes, on form P11D(b) by the same date.
Payment for the Class 1A NI owed on expenses and benefits provided to employees must be made to HMRC by the 22 July following the relevant tax year or by 19 July if payment is made by cheque.
HMRC guidance states that a penalty of £100 per 50 employees will be issued for each month or part-month that the P11D(b) is late. Employers will also be charged both penalties and interest if they are late sending payment across to HMRC.
In order to complete a P11D, certain information is required. The P11D will need to display the employer reference, along with the employee’s name, NI number, date of birth and their gender. In addition to this, specific details of the benefit or benefits that have been made available to that employee need to be included.
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Lora Murphy is a Policy and Research Officer at the CIPP. She covers the latest hot topics in payroll and is involved in consultations that can shape the future of policy and how payrollers operate.