Employers, have you completed and filed the Form P11D?

Local accountants and tax advisers, Trueman Brown, warn employers that the due date for filing the Form P11D is fast approaching.

Form P11D Deadline

The deadline for employers submitting the Form P11D is approaching fast. Employers must :

  • Submit the Form P11D to HMRC by 6th July 2016;
  • Pay any Class 1A national insurance liability based on the Form P11D submission by 22nd July 2016 (or 19th July 2016 if paying by cheque).

Employers have to prepare the Forms for all employees who receive benefits in kind and meet the following criteria:-

  • All employees earning over £8,500 per year;
  • Directors of the employer unless that director is a full time director with no material interest in the business OR the employer is a charity or non-profit making concern.

Employers can choose to deal with employees benefits and expenses through the payroll system so that the Form P11D does not have to be submitted.

BENEFITS WHICH ARE NOT TAXABLE

Please find below a list of benefits which are not taxable:-

  • Contributions to registered pension schemes (within limits);
  • Car, motor cycle or bicycle parking facilities at or near the workplace;
  • Child care facilities or vouchers worth up to £55 per week (for basic rate taxpayers);
  • Compensation/termination payments up to £30,000;
  • Welfare counselling services (with restrictions);
  • Staff canteen and dining facilities (provided they are available to all directors and employees);
  • Sports facilities (provided they are available to all directors and employees);
  • Relocation expenses, up to £8,000;
  • Long-service awards (provided they are an established practice within the firm or are in the employees’ contract) up to specified limits;
  • Awards under suggestion schemes (but there are restrictions);
  • Use of a pool car;
  • Use of a mobile telephone – one mobile phone only per employee where provided;
  • The provision of representative accommodation (except for certain directors);
  • Approved share incentive plans;
  • Use of cycles and cyclist’s safety equipment used mainly for journeys between home and work;
  • Certain bus services for journeys between home and work
  • Annual parties or similar functions costing up to £150 per head per annum;
  • Payments towards household expenses incurred by employees working at home (generally £6 per week);
  • Retraining expenses and courses;
  • Trivial benefits such as Christmas presents up to a value of £50 (excluding cash and vouchers).

In future blogs we will look in detail at benefits which are taxable including the provision of a company car or van and loans provided by employers.

Local accountants and tax advisers, Trueman Brown, deliver important services to small business. Contact us if you require assistance.