{"id":5687,"date":"2024-04-23T12:57:51","date_gmt":"2024-04-23T12:57:51","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5687"},"modified":"2024-04-23T12:57:53","modified_gmt":"2024-04-23T12:57:53","slug":"ahead-of-the-6-july-deadline-remember-that-p11d-rules-are-changing","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/ahead-of-the-6-july-deadline-remember-that-p11d-rules-are-changing\/","title":{"rendered":"Ahead of the 6 July deadline, remember that P11D rules are changing"},"content":{"rendered":"<p>If you choose to offer certain benefits to your employees, then you may incur additional Class 1 National Insurance (NI) liabilities which must be reported to HM Revenue &amp; Customs (HMRC).<\/p>\n<p><!--more--><\/p>\n<p>This applies to benefits known as \u2018benefits in kind\u2019 (BIKs), as they are effectively a salary increase for an employee.<\/p>\n<p>Examples include:<\/p>\n<ul>\n<li>Private healthcare<\/li>\n<li>Living accommodation<\/li>\n<li>Some non-essential travel expenses<\/li>\n<li>Company cars<\/li>\n<\/ul>\n<p>As an employer, you are responsible for reporting and paying additional NI Contributions (NICs) incurred on benefits in kind through the P11D form.<\/p>\n<p><strong>Do I need to file a P11D?<\/strong><\/p>\n<p>If you are an employer and provide taxable expenses or benefits in kind to employees, you must report it to HMRC.<\/p>\n<p>You can either do this through your payroll (\u2018payrolling\u2019) or online after the end of the tax year via a P11D form.<\/p>\n<p>If you choose not to payroll BIKs and expenses, you\u2019ll need to fill in and submit a P11D for each employee who has received taxable benefits.<\/p>\n<p>Whichever method you choose to report expenses and benefits, you will also need to report the amount of Class 1A NICs that you owe through a P11D(b).<\/p>\n<p>These are submitted either through your payroll software, if you have more than 500 employees, or through HMRC\u2019s PAYE online service, if you have 500 employees or fewer.<\/p>\n<p><strong>When do I need to file?<\/strong><\/p>\n<p>A valid P11D and P11D(b) must be submitted by 6 July after the end of the relevant tax year.<\/p>\n<p>You must pay any Class 1A National Insurance that you owe by 22 July of the same year.<\/p>\n<p>Missing the P11D(b) deadline may result in a penalty of \u00a3100 per 50 employees per month that the form is late.<\/p>\n<p><strong>What needs to be included (or not)?<\/strong><\/p>\n<p>You must include all taxable benefits, which includes the majority of benefits of significant value, including private healthcare or a company car.<\/p>\n<p>For certain business expenses, exemptions may apply depending on how you are reimbursing staff for these costs.<\/p>\n<p>You must either pay back the employee\u2019s actual costs or pay a \u2018benchmark\u2019 rate set by HMRC.<\/p>\n<p>In these circumstances, exempt expenses include:<\/p>\n<ul>\n<li>Business travel<\/li>\n<li>Business entertainment expenses<\/li>\n<li>Credit cards used for business purposes<\/li>\n<li>Fees and subscriptions<\/li>\n<li>Uniforms<\/li>\n<\/ul>\n<p>Certain benefits are classed as non-taxable or \u2018trivial\u2019, including:<\/p>\n<ul>\n<li>Refreshments or on-site meals<\/li>\n<li>A mobile phone<\/li>\n<li>Workplace parking<\/li>\n<li>Certain staff events such as Christmas parties, if they cost \u00a3150 or less per head and are open to all staff.<\/li>\n<\/ul>\n<p>These do not need to be reported as they are not subject to additional tax.<\/p>\n<p><strong>What changes are coming up?<\/strong><\/p>\n<p>Filing and processing P11D and P11D(b) forms has created a significant administrative burden on both employers and HMRC.<\/p>\n<p>To reduce this burden, the Government has announced that employers will be required to report and pay Income Tax and Class 1A National Insurance via their payroll software.<\/p>\n<p>You will need to make sure that you have suitable software in place and that you keep accurate records to make submission as straightforward as possible.<\/p>\n<p><strong>For support with P11D submission, expenses and employee benefits, please contact our team today to discuss how we can help you. <\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you choose to offer certain benefits to your employees, then you may incur additional Class 1 National Insurance (NI) liabilities which must be reported to HM Revenue &amp; Customs (HMRC).<\/p>\n","protected":false},"author":2,"featured_media":5690,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,30,56,28,141,25,4,26],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5687"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5687"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5687\/revisions"}],"predecessor-version":[{"id":5688,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5687\/revisions\/5688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5690"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}