If you were providing employees with taxable benefits and expenses in 2018/19 (cars, vans, private medical etc) these must be notified to HM Revenue & Customs (HMRC) on a form called a P11d

The reporting requirements depend on whether the benefits were put through the payroll or not.  Payrolled benefits should not be included on the P11D but must be taken into account in calculating the Class 1A National Insurance liability on form P11D(b).

Form P11D(b) must be filed regardless of whether benefits are payrolled or notified to HMRC on form P11D. The P11D(b) is the Class 1A return, as well as the employer’s declaration that all required P11Ds have been submitted.

There are various ways in which forms P11D and P11D(b) can be filed. The simplest is to use HMRC’s online end of year expenses and benefits service or HMRC’s PAYE Online for employer’s service. Forms can also be filed using commercial software packages.

There is no requirement to file P11Ds and P11D(b)s online – paper forms can still be filed if you prefer.

Deadline

Regardless of the submission methods, forms P11D and P11D(b) for 2018/19 must reach HMRC by 6 July 2019 at the latest, or there will be a fine.  Employees must be given a copy of their P11D (or details of the information contained therein) by the same date, so they can include it on their self-assessment tax returns. Details of payrolled benefits should have been notified to employees by the earlier date of 31 May 2019.

The Class 1A National Insurance due on the benefits must be paid by 22 July where paid electronically, or by 19 July where payment is made by cheque.

If you are providing your employees with benefits and are unsure on what you need to do, please get in touch.