Forms P11D – a reminder of the approaching deadline

22 May 2020

We are fast approaching the P11D submission deadline of 6 July 2020 for the 2019/20 tax year, and while it may currently feel like 6 July is a long way off, it is key to allow plenty of time to prepare and meet this deadline. Here are some key things to consider:

  • Forms P11D are essential compliance for any employers who provide reportable benefits to their employees. These forms must be prepared for every employee who receives a reportable benefit during the tax year.
  • If an employer has formally registered to payroll benefits for a tax year, it is important to consider whether this covers all benefits provided. Some employers find they offer some benefits that are not able to be payrolled or indeed they have decided not to payroll all benefits. Any reportable benefits that are not formally being payrolled must still be included on a P11D.
  • If an employer formally payrolls benefits this doesn’t remove the P11D process entirely as a P11D(b) form must still be submitted to HMRC by 6 July showing the value of all reportable benefits (including payrolled benefits) provided and liable to Class 1A NIC. The P11D(b) declares the Class 1A NIC due for the year to HMRC. 
  • These deadlines are statutory deadlines and HMRC can and will charge penalties for late or incorrect submissions and so it is important to have accurate information to submit P11D and P11D(b) forms in a timely manner. If forms are late and a penalty is issued the penalty will not stand if there is a reasonable excuse. HMRC may consider the coronavirus as a reasonable excuse but only where the employer is able to explain how they were affected by it, and the employer must still make a P11D return as soon as they can.

How can RSM help?

At RSM our specialists have extensive experience of helping employers meeting their tax and NIC obligations in respect of employee benefits in kind. We offer a wide range of employee benefit related services to help employer’s optimise their compliance, mitigate risks, and save time, including a tailored annual P11D preparation service. Please see our flyer for further details.

For more information, or if you have any questions or concerns, please contact Lee Knight, Susan Ball, or Steve Sweetlove.