Errors in P11D Working SheetsFriday, March 4th, 2011
Copies of the six P11D Working Sheets for the 2010/11 year end can be downloaded from HMRC’s download page for forms and publications, and interactive versions of the forms have been included in this year’s Basic PAYE Tools.
While updating The Learn Centre’s P11D course materials, the author found significant errors in the calculations built into three of the interactive forms, i.e. those for living accommodation (XP11DWS1.pdf), company cars (XP11DWS2.pdf) and loans (XP11DWS4.pdf). They are only available to use from within the Basic PAYE Tools, using the “Fill in Forms On Screen” link and selecting “Fill in Forms (without save option)”.
Working Sheet 1 is used to calculate the basic benefit and, if relevant, the additional yearly rent, of the provision of living accommodation. Although the form correctly gives HMRC’s official interest rate as 4% for the 2010/11 tax year, the form uses 4.75% in the calculation, the rate that applied in 2009/10.
Working Sheet 2 is used to calculate the cash equivalent of the car benefit and car fuel benefit. In order to determine the “appropriate percentage” that is allocated to all of the different fuel types except E (zero emission cars), the CO2 emission figures from the Table for 2009/10 are still being used. For example, 23% is given for a petrol car with an emission figure of between 175 and 179 g/km, instead of 24%. Similarly, 26% is used for an equivalent diesel car instead of 27%.
The calculated figures for low emission cars (76-120 g/km) appear to be correct, but the figure is shown in the wrong place on the form. However, the calculated figures for the very low emission cars (up to 75 g/km) (although I gather there aren’t any in existence yet) are wrong. They show 10% and 13% for petrol and diesel cars instead of 5% and 8%.
Working Sheet 4 is used to calculate the cash equivalent of interest-free and low interest loans. This calculation also involves the use of HMRC’s “official interest rate” which, for the 2011/12 tax year is 4%. However, the form performs the calculation using 4.75%, the interest rate for 2009/10.
The author has given details of these errors to HMRC. It is critical that the interactive forms be corrected urgently, before the P11D season is really upon us, and an update to the Basic PAYE Tools issued.