P11Ds: what you need to know
Anees Hussain from our tax department explains the process behind the declaration of staff benefits.
Many employers often provide their employees with remuneration packages that include far more than just the traditional salary. Staff members can potentially receive numerous taxable benefits-in-kind, including – but not limited to – company cars and medical insurance. There are also tax-free benefits-in-kind that can be offered to employees, such as mobile phones.
Taxable benefits-in-kind can be disclosed to HMRC via the payroll, but this is a voluntary system. Where clients haven't included them, they rely on us to help their business adhere to the compliance requirements outlined by the Revenue.
If you haven't disclosed the benefits via the payroll, you need to declare them on a what is known as a Form P11D, which requires a good knowledge of taxable benefits. It is important to be aware that some expense payments to employees can be taxable: any mileage claims, for instance, above the HMRC-approved rate. At Page Kirk, we can advise, via a cost-benefit analysis, on whether such benefits-in-kind are appropriate for your business.
P11Ds have to be submitted to HMRC by 6 July, following the end of the tax year. It can be a time-consuming process and the deadline only gives you a short window to go through all of the individual benefits offered to each employee. We can save you time and also provide you with peace of mind that you'll meet all HMRC's compliance deadlines. What's more, we always strive to communicate with you throughout the process of completing Form P11D to keep you fully informed at every step.