Employers have until 6 July 2018 to submit their annual P11D and P11D(b) forms to HM Revenue & Customs (HMRC) reporting relevant employee benefits and expenses for the 2017/18 tax year.
The reporting of benefits and expenses for tax purposes can be complex, and recent tax changes have added to that complexity with the abolition of P11D Dispensations and introduction of new ‘Trivial Benefits’ rules and new rules affecting arrangements with employees who can choose between a benefit or a cash alternative.
PAYE Settlement Agreements
The 6 July 2018 P11D deadline is also the date by which employers can enter into a PAYE Settlement Agreement (PSA) with HMRC. PSAs enable employers to settle tax and National Insurance Contributions (NICs) on behalf of their employees on certain benefits or expenses, instead of reporting them on the P11D.
PSAs are particularly useful where a benefit is intended to be free-of-tax for the recipient or where it might otherwise be difficult to apportion costs between employees.
To discuss, please contact Andy Summers on Rugby 01788 539000 or Jon Kicks on Leicester 0116 261 0061.