Reporting taxable expenses and benefits via P11D

by Michael Blaken

Published on 4th April 2023

If you give taxable benefits and expenses to yourself or your staff then you need to report these to HMRC.

These are benefits such as private healthcare, interest-free loans (to pay for train season tickets, for example) and company cars.

For years, there have been fewer and fewer businesses providing taxable benefits. However, with many business owners getting electric company cars, they need to remember to complete the P11D declaration and pay the small amount of tax due.

If you pay yourself or your employee expenses and benefits through your payroll, you report them online and pay tax on them throughout the year. There is then no requirement to report expenses and benefits for each employee at the end of the tax year if all their expenses and benefits are payrolled.

However, you must complete a separate form P11D for each employee you’ve provided with taxable expenses or benefits that were not payrolled. And you must also report the Class 1A National Insurance you owe at the end of the tax year by submitting form P11D(b).

The information HMRC is now expecting relates to the tax year just ended, 2022/23. The deadline for submitting P11D and P11D(b) is July 6 and late submission will incur penalties.

One change is that HMRC will no longer accept paper versions. If you already submit P11D and P11D(b) returns online, then you are unaffected. However, if you have submitted paper returns in previous years, you will now need to submit P11D and P11D(b) returns online.

Submission must be made via one of the following methods:

For employers who need to submit up to 500 P11D and P11D(b) returns, the free HMRC PAYE online services can be used. For anything more, third party software is required.

For help and advice on taxes relating to benefits and expenses, get in touch with the team here at Optimum. We help business owners and directors with business tax, across Swindon, Wiltshire, Cheltenham and Gloucestershire.

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