The forms P11D and where appropriate P9D, which report employees and directors benefits and expenses for the year ended 5 April 2009, are due for submission to HMRC by 6 July 2009. The process of gathering the necessary information can take some time so it is important that this process is not left to the last minute.
Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A National Insurance Contributions (NIC) at 12.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.
HMRC have advised that they will shortly start sending out paper forms P11D(b) - Return of Class 1A NICs. The forms should be issued by 15 June 2009. Those employers who filed electronically last year will receive an electronic reminder as opposed to a paper form. Payslips will be issued to employers regardless of how the form is to be submitted.
This year HMRC have introduced a new quality standard for P11Ds that are submitted on paper, setting out how employers must complete the form and what information must be included. Failure to complete forms in accordance with the standard may result in the forms being rejected by HMRC and may result in a penalty. For more information on these issues please use the links below.
If you would like any help with the completion of forms P11D or the calculation of the Class 1A liability please get in touch.
Source: HMRC P11D guidance HMRC P11Db guidance HMRC notice