Where employees were provided with taxable benefits and expenses in 2018/19, these must be notified to HM Revenue & Customs (HMRC).
The reporting requirements depend on whether the benefits were payrolled or not, taxable benefits that were not payrolled in 2018/19 must be reported to HMRC on form P11D.
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 employers 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 be filed if preferred.
Regardless of the submission methods, forms P11D and P11D(b) for 2018/19 must reach HMRC by 6 July 2019. Employees must be given a copy of their P11D (or details of the information contained therein) by the same date. Details of payrolled benefits must be notified to employees by the earlier date of 31 May 2019.
Class 1A National Insurance must be paid by 22 July where paid electronically, or by 19 July where payment is made by cheque.
If you would like to discuss, or need our assistance, please contact Andy Summers on 01788 539000.