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The biggest question most people have, after what is a P11d is what goes on a P11d. The good news is that here we are going to explain this form in greater detail, so it makes more sense.
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Do you receive or pay your employees’ or directors’ expenses or benefits throughout the year? Then you must complete and submit a P11d form to HMRC for each employee who has received the benefits, as well as a P11d(b) to summarize the class 1A NIC due, as required by law. Does all that sound like nonsense? If so, it does to many people, so you are not alone. The good news is that here we are going to explain this form in greater detail, so it makes more sense.
P11d Basics The biggest question most people have, after what is a P11d is what goes on a P11d. The answer to the latter is any of the following: Any reimbursed expenses Any employment benefits that do not go through payroll, such as gym memberships or non-business related education. All business related entertainment expenses. Company car provisions and fuel reimbursements Any directors’ beneficial loans. ● ● ● ● ●
Statistical Details for a P11d Form There are also certain standard statistical details that must be included on a P11d form: Your employer reference number Your employees’ full legal name Your employee’s NI number or date of birth, as well as his or her gender If you’re reporting a company car, include the list price. If you fill out the ‘total cash equivalent of car fuel provided,’ make sure to fill out the ‘total cash equivalent of cars provided’ as well. If you give a beneficial loan to an employee you’re reporting, fill out the ‘cash equivalent of loans’ section as well. ● ● ● ● ● ●
What Exactly is a P11d(b)? A P11d (b) is a summary of your P11ds that shows the total amount of Class 1A NIC your company owes to HMRC. You must also submit a P11d (b) if you have one or more P11ds to submit 4 Steps to a Successful P11d (b) Enter the total cost of all expenses and benefits for the year. Adjust this total to account for expenses and benefits that do not require Class 1A NIC. Calculate your NIC for Class 1A. Make your P11d declaration in its entirety via a P11d(b) ● ● ● ●
A Word About Company Cars and the P11d One of the most common reasons for a P11d to be submitted is to report the usage costs associated with a company car. Obviously the type of car – and its age – will affect how it is taxed. Despite the fact that you, the employer, will be the one to submit the P11D form, the employee will be the one to pay the tax bill. This is where the P11D becomes crucial for company car drivers. The same P11D value calculation applies to both new and used cars, so if you’re thinking about running a fleet of used company cars to save money, the P11D value and tax will still be based on the original list price. If there isn’t a list price to refer to, a notional price is used instead. This is the price at which the car’s manufacturer, importer, or distributor would have been expected to sell it.
When Do P11d (b) Forms Need to be Filed? The P11d(b) form has a filing deadline of July 6th. For each month/part month, penalties will be calculated at £100 per 50 employees. You will receive one reminder from HMRC that your P11d is overdue if it is not received by July 19 – after that, you will only receive a penalty notification if your return is 4 months late. Need help with P11d forms or any other aspect of business accounting? Pearl Lemon Accountants can help. Get in touch today and let’s chat about your unique accounting needs and just how we can assist you.
