P11D Deadline Is Fast Approaching – Are You Prepared?

The process of gathering the necessary information can be time-consuming, so it is important that this is done well ahead of the due date. Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system. However changes were introduced to the rules for reporting expenses from 6 April 2016 and some employers payrolled the benefit. If this is the this case, benefits do not need to be reported on forms P11D but employers should advise employees of the amount of benefits payrolled.

 

In addition, regardless of whether the benefits are being reported via P11D or payrolled, the employer is obligated to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July (or 22nd for cleared electronic payment).