Reminder to report expenses and benefits for the 2014/15 tax year by 6 July 2015

You need to tell HMRC about any benefits and expenses you’ve provided to your employees during the tax year ending 5 April 2015 by 6 July 2015. Form P11D is the form to use to do this if your employe

Copies of the appropriatiate form should be given to the employees by 6 July too. Late filing penalties of up to £300 per form (plus £60 per day for persistent failure to file) can be applied.

Some points to note:

• Employers have to pay Class 1A NIC at 13.8% on most benefits (but not expenses) provided to P11D employees and so may also have to submit a Form P11D(b) by 6 July.  Payment of Class 1A NICs, as calculated from the P11D(b), is required by the 19 July (or 22nd July if paying electronically).  HMRC s systems can struggle to allocate Class 1A NIC correctly sometimes, so it is important that you provide the correct payment reference when making your payment.  You should use your 13 character Accounts Office reference followed by 1513. For example if your Accounts Office reference is 123PA00123456, you would use 123PA001234561513.

• HMRC have an online form to enable employers to submit end of year expenses and benefits forms  P9D, P11D, and P11D(b) right up until the deadline: https://www.gov.uk/government/publications/paye-end-of-year-expenses-and-benefits-online-form They also have an online form that you can use to tell them that you have no forms to return (you may need to complete this if HMRC are expecting a 2014/15 submission from you but you have  not actually provided your employee with any benefits or expenses during 2014/15): https://online.hmrc.gov.uk/shortforms/form/EXBENoRtn

• The benefits and expenses reported by you can be treated as additional income on your employee meaning they have to pay tax on the value. However if they were provided by you wholly, exclusively and necessarily in the course of the employment, your employee may get tax relief, so that the tax charge is cancelled out. In such circumstances, employers may request a ‘dispensation’ in respect of the expenses or benefits which can help avoid this paper chase (it essentially removes the requirement for the employer to report them in the first place). Whilst this facility may not help you get out of 2014/15 reporting, please note that you can still apply for a dispensation for the 2015/16 tax year (it can be backdated to the beginning of the tax year) which may make things easier for you this time next year! https://www.gov.uk/apply-for-a-dispensation

More information?

General guidance for employers who provide expenses and benefits to their employees is available on our website.

Pages 9 to 13 from the April 2015 edition of the Employer Bulletin provide further in-depth guidance to help with the completion of forms P9D, P11D, and P11D(b) for 2014/15. 

HMRC also have an Expenses and benefits from employment toolkit which you may find useful. The toolkits are principally aimed at tax agents and advisers but they may also be of interest to employers as they as it provides guidance on how to avoid making common errors that HMRC see in filed returns.

(06-07-2015)