Reminder to report expenses and benefits for the 2017/18 tax year by 6 July 2018

You need to tell HMRC about any benefits and non-exempt expenses you’ve provided to your employees during the tax year ending 5 April 2018 by 6 July 2018.

Form P11D is the form to use to do this (there is no longer a separate form if your employee earns at a rate of less than £8,500). 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:

  • If you have made qualifying business expense payments or reimbursements to your employee in 2017/18, there is no need to report them on the P11D and there will be no tax or NIC consequences.
  • HMRC 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 2017/18 submission from you but you have not actually provided your employee with any benefits or expenses during 2017/18).
  • 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 1813 for payments of Class 1A NIC. For example if your Accounts Office reference is 123PA00123456, you would use 123PA001234561813.

For more information on paying HMRC and using the correct reference, see our website page 'Paying HMRC'.

Further help with 2017/18 reporting

More information for employers who provide expenses and benefits to their employees is available on our website at 'End of Year Processes'.

On page 2 in the June 2018 edition of the Employer Bulletin there is some guidance to help with the completion of forms P11D and P11D(b) for 2017/18. There is also information on what to do if you have been (or want to start) payrolling your employee’s benefits.

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 provide guidance on how to avoid making some of the common errors that HMRC regularly see in submitted returns.