The ICAEW have openly called on HMRC to improve form P11D, used to report benefits in kind (BiK), to make it easier for employers to complete.

A P11D is a form used to report expenses and benefits paid to directors and employees which have not been subject to PAYE tax. The process of reporting can be complicated, as well as unwieldy, with employers liable to receive a penalty of £100 for every 50 employees for each full month that the return is late.

A suggested revamp would simplify the form and ‘surrounding processes’, easing the administration burden for HMRC, employers and employees. One of the key recommendations in the reporting modernisation is to make it an end-to-end online process, reducing complexity, processing delays and mistakes.

We would very much welcome such changes. In the meantime, to ensure you are complying with the current clunky P11D system, feel free to call on one of our tax team. 

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