What is a P11D?

Glossary, Limited Company, P11Ds, Videos,

P11Ds are the next in the usual run of submissions due to HMRC, but what are they, and what do you need to be aware of? What could catch you out, and what are the deadlines you need to hit? What penalties could you face if you miss those deadlines, or leave something off the forms? The answers to these and other P11D questions are all in the latest episode of BaranovTV; click below to watch and make sure you’re prepared in good time!

Transcript:

Hi welcome to another episode of BaranovTV designed to demystify the world of accounts and tax and to help your business grow.

In this episode, I wanted to talk about P11Ds. They are the next stage really that you need to be thinking about of forms that you need to submit to the Revenue, if you give your employees or directors any benefits or expenses. So things to think about are company cars, accommodation costs, health insurance, travel expenses.

There are lot of different expenses and benefits that you may be giving to your staff or to directors that need to be considered and potentially need to be included in forms P11D. This tells HMRC about the benefits and expenses and enables them to calculate the amount of tax or Class 1A National Insurance that should be paid on those benefits or expenses.

You need to submit a P11D to the Revenue for each employee who receives any of those sorts of benefits.

When do you need to submit a P11D(b)?

  • If HMRC they ask for one
  • If you submit any P11Ds
  • If you’ve paid any benefits or expenses through the payroll.

The deadline for submission is 6th July each year.

If the Revenue have asked for a P11D but there’s nothing to submit, then you can apply for a Declaration. This means that you don’t actually then need to submit a P11Din future.

If you’re paying tax on the employee’s benefits and expenses through the payroll, you don’t need to submit a P11D for them but you do need to make sure that you include those amounts on the P11D(b) because you need to take account of the Class 1A National Insurance. That Class 1A National Insurance needs to be paid over by the 19th of July.

What are the two P11D deadlines?

  1. The 6th of July for the P11Dto be submitted
  2. The payment of the Class 1A National Insurance by the 19th of July.

You need to be aware that those two deadlines attract penalties and interest so do make sure that you hit those please.

All of the different types of expenses and benefits are calculated differently, so you do need to make sure that you consider all of the different types and that you’re looking into each one.

If you would prefer for us to do that for you, of course we can. It’s actually quite a simple process for us to prepare P11Ds and P11D(b)s these days because for most of our clients we have access to their online software. We can go into Xero or QuickBooks and find a lot of that information. We’ll need to ask a few questions just to make sure that there’s nothing else, but there’s not a massive cost associated with that, depending on the complexity and the numbers involved, obviously, for the size of your team.

 

Do get in touch if you’ve got any questions about P11Ds or would like to talk about us completing those for you. Otherwise, I’ll see you all very soon.