This is a quick update on P11Ds so you are prepared for the deadline next year…
What is a P11D? If your Company pays for any employee expenses or benefits in kind, these need to be recorded annually on a P11D form. It’s the employer’s responsibility to file the P11D.
What would be included? The most common things are private healthcare insurance, company cars, season ticket loans or any other loans, and childcare costs. For cars there is a calculation which needs to be done based on the value of the car and the Co2 emissions it produces.
How does it work? The value of the benefit provided by the Company is listed on the P11D form. This is then submitted to HMRC annually. The Director or the employee receiving the P11D, will need to include the value of the benefit per the form in their self assessment tax return.
The theory is that the employee has received something which has a personal benefit, which has been paid for by the business. The P11D is recording that personal benefit, and making sure that the individual pays some tax personally relating to that benefit.
P11Db – If your Company has issued P11D forms to Directors or employees, it will also need to complete and file a P11Db form. This assesses the taxable benefits which have been reported on P11D forms, and calculates the additional national insurance which the Company needs to pay.
If the taxable benefit had been paid in salary instead, the Company would have paid national insurance, so this is settling up on that basis.
When is the deadline? P11D and P11Db forms need to be submitted annually to HMRC by the 6th July. Any National Insurance owed by the Company on the P11Db form needs to be settled by the 22nd July.
We will prepare and submit your P11D and P11Db forms if you are a PennyBooks client.
Any questions please get in touch with our support team – support@pennybooks.io
James Watson
