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P11D
Forms P11D(b) and Payslips – RTI Pilot Employers
Tuesday, April 30th, 2013HMRC have advised that employers who were part of the RTI Pilot in 2012/13 will experience a delay in receiving their P11D(b) and payslip. This is necessary for the recording the Class 1A NICs by 06 July 2013. These forms will be dispatched around 02 July 2013, meaning that employers using this form are liable [...]
P11Ds – Cars and Security Enhancements
Saturday, June 23rd, 2012Effective 06 April 2011, the £80,000 cap on the List Price and accessories of the company car was removed. Some unintended victims of the removal of this cap are employees who, by reason of the nature of their employment, are provided with cars with added security enhancements / accessories. The Government considered that removal of [...]
P11D Frequently Asked Questions
Saturday, June 23rd, 2012What are the deadlines for P11D processing? Simply, The Income Tax (Pay As You Earn) Regulations 2003 (Regulation 85) require that the employer is required to submit all relevant and completed P11D and P9D returns to HMRC by 07 July each year. In practice, this means that they must be received at HMRC on or [...]
What are the deadlines for P11D processing?
Friday, June 15th, 2012Simply, The Income Tax (Pay As You Earn) Regulations 2003 (Regulation 85) require that the employer is required to submit all relevant and completed P11D and P9D returns to HMRC by 07 July each year. In practice, this means that they must be received at HMRC on or before 06 July. Regulation 94 requires the [...]
I am starting to prepare my P11Ds. What do you recommend as essential reading / literature?
Friday, June 15th, 2012There are a few manuals and guides that are invaluable for all payrollers: Booklet CWG5 – information about Class 1A NICs on benefits in kind Booklet CA33 – specifically for Class 1A NICs on car and fuel benefit Booklet 480 – the ‘bible’ of the P11D containing HMRC’s guidance on the applicable legislation Booklet 490 [...]
Where do I send my P9Ds / P11Ds when I have completed them?
Friday, June 15th, 2012In May 2011, HMRC announced that it had set up a dedicated post room to handle paper P9D, P11D and P11D(b) Returns submitted by employers. The address is: HM Revenue and Customs (NIC&EO) P11D Support Team Tynemouth House Room BP8019 Benton Park View Longbenton Newcastle upon Tyne NE98 1ZZ The forms must be received before [...]
We payroll our benefits so that the tax liability is accounted for each pay period. Do we still have to file the P9Ds / P11Ds?
Friday, June 15th, 2012Despite HMRC consideration of formal procedures for replacing P11D reporting with payrolling of benefits and expenses, existing legislation requires employers to submit P11Ds or equivalent lists, even if they have local agreements to process the tax liabilities for benefits and expenses through the payroll. HMRC can impose penalties for failure to file P11Ds. The following [...]
What is a S336 Claim? Should this be completed by the employee or the employer?
Friday, June 15th, 2012This acronym refers to Section 336 of the Income Tax (Earnings and Pensions) Act 2003. Broadly, if an employer makes a declaration on the P11D, which the employee and HMRC agree can be counted as tax deductible, this is referred to as a S336 Claim. This would, generally, be an expense that has been declared [...]
What is a Dispensation?
Friday, June 15th, 2012The Benefits Code, within the Income Tax (Earnings and Pensions) Act 2003 defines the payments, benefits and facilities that are treated as earnings when provided to employees and lower-paid employees. A Dispensation is a mutual written agreement between HMRC and the employer and will exempt an employer from having to consider items covered by the [...]
In what circumstances does HMRC approve an employer’s application for a dispensation?
Friday, June 15th, 2012A dispensation is a document issued by an employer’s tax office, confirming that the tax legislation applying to the specified expenses payments and benefits no longer apply. A dispensation is only issued if the tax office is satisfied that no additional tax is payable on certain payments, benefits and facilities that are provided for the [...]
P11D FAQ – What makes a van a van?
Monday, May 21st, 2012This is a common question, as employees and employers alike seek to reduce the taxable benefit and the Class 1A National Insurance Contributions liability. For HMRC’s definition, it is necessary to revert to the governing legislation, which is the Income Tax (Earnings and Pensions) Act 2003; specifically Section 115 entitled meaning of ‘car’ and ‘van’. [...]
P11Ds on CD
Monday, March 5th, 2012In 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 [...]
P11D Penalty Notices
Saturday, November 19th, 2011In their latest update, HMRC have advised that, from last week, P11D(b) Penalty Notices have started to be issued – this is the form on which an employer makes their annual Class 1A Return. The penalty is for tax year 2010/11, where P11D(b) Returns were due by 06 July 2011. The penalty is £100.00 per 50 [...]
Payrolling of benefits and P11D reporting
Monday, April 11th, 2011Employers who have local agreement to payroll benefits and expenses must still submit completed P11Ds or equivalent lists. Despite HMRC consideration of formal procedures for replacing P11D reporting with payrolling of benefits and expenses, existing legislation requires employers to submit P11Ds or equivalent lists even if they have local agreements to process the tax liabilities [...]
Errors in P11D Working Sheets
Friday, March 4th, 2011Copies 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 [...]
Accurate completion of form P11D
Friday, March 4th, 2011The following is an extract from the latest weekly informal updates (dated 25 February) from HMRC to employer representatives. P11D issues HMRC provides comprehensive guidance on expenses and benefits on our website at http://www.hmrc.gov.uk/paye/exb/index.htm. This covers all you need to know about the key forms you will be required to complete, the records you need [...]
For how many years must we keep our payroll records?
Friday, December 10th, 2010Regulation 97 of the Income Tax (Pay As You Earn) Regulations 2003 requires employers to “keep and preserve” their “PAYE records”, other than those that have to be sent to HMRC, for a period of not less than three years following the tax year to which they relate. Put another way, employers must keep the [...]
