Employment tax deadlines

Submit paper or electronic forms P46 (car) 

Deadline for action: 2 May 2018 and 2 August 2018

Issue: Details of company cars provided to employees for the previous quarter should be provided to HMRC using form P46(car). These details are usually submitted electronically. The completed online form can, however, be printed out and submitted in paper form to HMRC by the relevant date. This method cannot be used for replacement vehicles.

Action: P46(car) forms covering the quarters to 5 April 2018 and 5 July 2018 are required to be received by HMRC by 2 May 2018 and 2 August 2018 respectively.

Onshore & offshore employment intermediaries – quarterly reports 

Deadline for action: 5 May 2018 and 5 August 2018

Issue: Employment intermediaries are required to make quarterly reports to HMRC. The quarterly reports for the quarters to 5 April 2018 and 5 July 2018 are due by 5 May 2018 and 5 August 2018 respectively. These reports require a considerable amount of information regarding all workers provided to their clients and related payments where the intermediary, or their payroll operator, did not operate PAYE.

Action: Quarterly employment intermediary reports must be made using HMRC’s report template and submitted using HMRC’s online service. Automatic penalties arise if the report is late or incorrect, with the amount of each penalty depending on the number of offences in a 12 month period: £250 (first), £500 (second) and £1,000 (third and later). The penalty clock is reset once there has been a 12 month period without a late or incorrect return.

PAYE and NICs reporting and payments 

Deadline for action: Monthly – from 19 (or 22) May 2018

Issue: To avoid interest and penalties, employers should make a Full Payment Submission (FPS) to HMRC at the time they pay their employees and pay over deducted tax and NICs by the due date. Tax and NICs deducted under PAYE should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. The FPS and, if applicable, an Employer Payment Summary (EPS) should also be submitted by the 19th of the following month.

Action: Employers should submit their FPSs and EPSs (including, where applicable, a report of the apprenticeship levy due and allowance claimed) and pay their PAYE tax and NICs on time. Advance payment should be made where the payment date falls on a weekend. Late payments attract interest at 3 per cent and late filing gives rise to penalties of between £100 and £400 per month, depending on the number of employees.

Employers that have incurred penalties have 30 days to appeal if appropriate.

CIS reporting and payment dates 

Deadline for action: Monthly – from 19 May 2018

Issue: CIS300 monthly returns of payments made by contractors to subcontractors, and payment of the CIS tax deducted, should be made.

Action: Contractors should submit their CIS300 Returns by the 19th of the following month to avoid late filing penalties. To avoid interest and late payment penalties, CIS tax deducted should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. Advance payment should be made where the payment date falls on a weekend.

Ensure your 2017/18 P60 returns are provided to employees on time or face penalties 

Deadline for action: 31 May 2018

Issue: All employers are required to provide forms P60 to all individuals who were employees on 5 April 2018. Employers who fail to provide P60s by 31 May will have committed an offence and face possible penalties to be determined by the Tribunal up to £300 per return, plus up to £60 for each additional day the return remains outstanding.

Action: All employers must provide forms P60 to relevant employees by 31 May 2018.

File your 2017/18 short-term business visitor arrangement report (Appendix 4) 

Deadline for action: 31 May 2018

Issue: Where an employer or receiving entity has entered into an Appendix 4 arrangement with HMRC on the tracking and reporting of short-term business visitors to the UK, end of year reports must be made. Where such an arrangement has been entered into but there are no short-term business visitors in the tax year, a nil return should be made.

Action: Employers and receiving entities should prepare and submit their 2017/18 annual short-term business visitor arrangement report by 31 May 2018.

Check for new advisory fuel rates 

Deadline for action: 1 June 2018

Issue: HMRC revises the advisory fuel rates every quarter. These rates apply when an employer reimburses employees for fuel for business travel in their company cars, and when an employer requires employees to repay the cost of fuel used for private travel in such vehicles.

Action: Employers should review HMRC’s advisory fuel rates each quarter to ensure that they are using the current rates.

Make PAYE Settlement Agreement (PSA) to reduce administration 

Deadline for action: 5 July 2018

Issue: PSAs are a useful means of meeting the tax and national insurance payable on certain expenses and benefits provided to employees. Under a PSA, employers do not need to enter the relevant items on forms P9D or P11D, operate PAYE on them or assess them for class 1/1A national insurance contributions. Payment is due in October.

Action: Employers wishing to take advantage of a PAYE Settlement Agreement for 2017/18 need to agree this by close of business on 5 July 2018, or else be required to include additional entries in employee P11D returns and account for PAYE and NICs as appropriate.

File your 2017/18 online employment related securities annual returns on time or face penalties 

Deadline for action: 6 July 2018

Issue: Online reporting is obligatory for employment related securities (share option schemes, one-off share awards etc) operated by UK and overseas companies, with automatic penalties for late filing. Each plan or unapproved award needs first to be registered then the annual return submitted online. Details of participants and awards must be provided in a specific format. Automatic penalties for late filing start at £100 penalty per return, rising to £400 if returns are three months late and £700 if they are six months late. Daily penalties may be charged if returns are over nine months late.   

Action: Employers should finalise their employment related securities annual returns in good time to meet the 6 July online filing deadline. 

File your 2017/18 P11D and P11D(b) returns and provide them to employees on time or face penalties 

Deadline for action: 6 July 2018

Issue: The deadline for filing P11D and P11D(b) returns and providing them to employees is strictly enforced and penalties are generated automatically by HMRC’s computers. Penalties for P11D(b) forms are based on employee numbers and are repeated for every month the return remains late. Late filing penalties also apply for failure to submit forms P11D.

Action: Employers should finalise their P11Ds and P11D(b)s in good time to meet the filing deadline. HMRC should also be notified of taxable termination packages exceeding £30,000, consisting of cash and non-cash benefits.

File your 2017/18 termination payments and benefits report 

Deadline for action: 6 July 2018

Issue: Employers are required to submit a termination payments and benefits report where they include non-cash benefits in an employee termination package. No report is required where the total value of the settlement is estimated by the employer/ex-employer not to exceed £30,000.

Action: Employers/ex-employers should prepare and submit their 2017/18 annual terminations and benefits report, if required, by 6 July 2018.

Make class 1A national insurance contribution payments on time to avoid interest on late payment 

Deadline for action: 19 July 2018 (22 July for electronic payments)

Issue: The deadline for receipt by HMRC of payment of class 1A national insurance contributions included on form P11D(b) is 19 July for postal payments and 22 July for electronic payments. Failure to meet these deadlines will result in automatic interest at 3 per cent per annum on the late payment of tax, and penalties starting at 5 per cent when payment is 30 days late, increasing to 10 per cent after six months and 15 per cent after 12 months.

Action: Employers should identify the amount payable and make arrangements to make payment to be with HMRC by the due date to avoid interest on late tax and penalties.

For more information please get in touch with Bill Longe, or your usual RSM contact.