If you or your clients provided taxable expenses or benefits to employees or directors during the 2023/24 tax year, you will need to report these to HMRC. For any expenses or benefits not reported throughout the year through the payroll, you must submit a P11D form for each employee or director detailing the expenses and benefits paid.
Whether you chose to payroll employee expenses and benefits, or report benefits through a P11D form, you must also submit a P11D(b) form to declare how much Class 1A National Insurance you need to pay on all the expenses and benefits you provided to employees and directors the previous tax year.
The deadline to submit any P11D and P11D(b) forms and to give employees a copy of their P11D is the 6th of July 2024. The deadline to pay any Class 1A National Insurance owed on expenses and benefits is the 22nd of July 2024 if paying electronically, or the 19th of July 2024 If paying by cheque.
What if I miss the deadline?
If you miss the deadline, you or your clients may receive a penalty of £100 per 50 employees for each month your P11D(b) is late. If you submit incorrect returns or are late paying HMRC, penalties and interest may also be implemented.
How do I know which expenses and benefits I need to report?
Some examples of expenses and benefits that must be reported include:
- Car parking charges
- Bonuses
- Mobile phones
- Health insurance
- Entertainment
- Childcare
- Public transport
- Vouchers
- Company cars
- Accommodation
For a full list of employee expenses and benefits that you may need to pay tax and National Insurance on, visit HMRC’s website here.
What about PAYE Settlement Agreements (PSAs)?
A PSA allows employers to make one annual payment to cover all the tax and National Insurance due on minor or irregular or expenses or benefits made to employees. If you have a PSA, you must pay any tax or Class 1B National Insurance owed by the 22nd of October. These don’t need to be included in P11Ds.
Submitting P11Ds and P11D(b)s in BrightPay
Through our cloud payroll software, BrightPay, you can easily submit P11D and P11D(b) forms from any device, from any location. When you’re in the software, go to RTI > New > Expenses and Benefits (EXB). Once you’re happy with the information, select ‘Create Submission > Send now. Then the form has been sent to HMRC.
To see how our cloud payroll software can offer you a more flexible and efficient way of working, click the link below.
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