Tax & Accounting News

New rules on P11D forms

11/06/2009

This year’s deadline for submitting P11D forms falls on Monday, 6 July, and for the first time HM Revenue and Customs (HMRC) has indicated it will reject forms which are not filled out correctly, making it even more important for businesses to ensure they know what information is required.

The forms are part of the end-of-year PAYE procedures and require companies to report all benefits and expenses paid to and received by employees, including directors, but every year thousands are completed incorrectly and a crackdown has been threatened for some time.

However, since this is the first year of the new ‘get tough’ regime, it is expected some allowances may still be made. Some of the main points likely to be checked are:

• The employer reference number.
• The employee’s/director’s name and NI number (or if the NI number is not known, the date of birth and gender is acceptable instead).
• The list price of all company cars provided.
• If there is an entry in box 10 of section F (total cash equivalent of car fuel provided) there must also be an entry in box 9 (total cash equivalent of cars provided).
• If a beneficial loan to an employee or director is included in section H, there should also be an entry in box 15 (cash equivalent of loans).#

HMRC has insisted that this year it will not fill in any missing details on the form, even if it knows what they are. Instead the form will be rejected and sent back. There is no penalty for this, but if the form has not been submitted until the last minute, this delay could lead to a late filing penalty. Since HMRC is notoriously slow in processing documents, the submission deadline could have passed by the time the form is rejected, even if it was submitted before the closing date.

P11D forms can be submitted on paper or online, although registration is required for the latter. The advantage with submitting online is the computer system will not accept incorrectly-completed forms, so any mistakes will be immediately apparent. The deadline is the same whichever way the form is submitted.

The same deadline also applies to form P11D(b), which consists of a declaration that form P11D has been submitted. The Class 1A NI due on the benefits declared should be paid by 19 July.

For more information please contact us.

 

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