Newsletter Summer 2016

P11D or not to P11D

This year may be the last time you have to submit lots of P11D forms for your employees. Any valid business expenses reimbursed to employees from 6 April 2016 won’t have to be reported on a P11D form for 2016/17.

Benefits such as company cars and health insurance will still have to be reported. Although this report can be avoided if you have elected to ‘payroll’ those benefits – i.e., to include the value of the benefit as part of the amount taxed through the payroll each month. It’s now too late to elect to payroll benefits for 2016/17, but you can do so for 2017/18. Let’s talk about what this could save for you.

Leaping back to the present, you will need to complete forms P11D for 2015/16 and submit them to HMRC by 6 July 2016. We can help with this task.

A P11D(b) must be submitted to report the class 1A NIC due on any benefits provided. That class 1A NIC must be paid by 22 July 2016, if paying electronically (19 July if paid by cheque). Remember to quote the 13-character accounts office reference with ‘1613’ tagged on the end, which tells HMRC that the payment is for class 1A NIC.