P11Ds on CDMonday, March 5th, 2012
In May 2011, HMRC began a trial which allowed employers to file P11D information by CD in the form of a spreadsheet, where benefits had been processed through the payroll for PAYE (‘payrolled benefits’).
In an E-Mailed communication to software developers, HMRC advised that they had evaluated results of this trial and found that there was a low take-up by employers, therefore, coupled with the increased cost of implementing the trial further and data security issues, they have decided to END the trial and CEASE to offer the option as a filing method in the future.
Any submissions after 29 February 2012 will be destroyed upon receipt at HMRC and the employer advised to resubmit using one of the approved electronic methods or via paper. See the link below for full details of this information from HMRC.
Whilst talking of payrolled benefits, whether totally or in part, it is worthwhile mentioning the different submission requirements that HMRC have detailed on their Website. HMRC have different procedures for:
- ALL benefits have been payrolled AND the P11D submission is online or by an approved electronic method
- SOME benefits have been payrolled AND the P11D submission is online or by an approved electronic method, or
- SOME benefits have been payrolled AND the P11D submission is PAPER
Please see the links at the end of this section.
As we approach P11D processing time, it is definitely worth checking how your P11D software / P11D provider will deal with the reporting of benefits and expenses that have been payrolled. Declaration via the CD is now not possible and we still have those three different and burdensome scenarios that HMRC have imposed.
I am a great believer in payrolling benefits where it is appropriate to the organisation and will reduce the administration burden for them. It does seem, however, that the administration burden is simply moved from P11D administration to P11D reporting.
Whilst on the subject, it is worthwhile noting that payrolled benefits will be one of the data items that are to be declared on the RTI Full Payment Submission (FPS). Does this mean that payrolled benefits will not have to be declared to HMRC on the P11D / P9D once we are an ‘RTI Employer’?