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The P11D Form - End Of Year Expenses and Benefits

Wed 27th Jun 2018
The P11D is a form provided by HMRC to detail benefits received in kind - expenses and benefits an employee has had throughout a given tax year. Use the P11D form if you’re an employer who needs to report end-of-year expenses and benefits for employees and directors. A P11D will need to be completed for each employee that this represents. These forms will need to be submitted by the 6th July following the tax year in questions, they are not dependant on your company’s own tax year.

As benefits in kind effectively increase your salary, there may be National Insurance contributions to be paid on them also, although it’s important to note these contributions will be paid by the company, not the individual.

Examples of expenses and benefits include:

- Company cars
- Health insurance
- Travel and entertainment expenses
- Childcare

Each benefit or expense is calculated different and they are not all treated in the same way. Check here for HMRC’s type of expense to ensure correct calculations are submitted.

There are currently 14 sections on the P11D:

Section A – Assets Transferred
Section B – Payments made on behalf of the employee
Section C – Credit Cards and vouchers
Section D – Living Accommodation
Section E – Mileage Allowances
Section F – Cars and car fuel
Section G – Company Vans
Section H – Beneficial Loans
Section I – Medical Health
Section J – Qualifying Relocation Payments
Section K – Services Supplied
Section L – Assets placed at employee’s disposal
Section M – Other Items
Section N – Expenses Payments

Common mistakes

As with anything there are common mistakes that could be avoided when completing a P11D. This includes home phone use - calls that have been made from a personal phone and the company has repaid the cost. Keep a note of all business use on your personal devices, or better still, purchase a company phone exclusively for business use.

Don’t neglect or leave until the last minute

This comes without saying but if you keep on top of your finances as much as possible, it will be easier to reconcile your accounts when the time comes. Address problems as they arise and keep your bookkeeping up to date.

Register to Payroll the benefits

If you register with HMRC by 6th April prior to the tax in question, you can opt to deduct and pay tax on most employee expenses through your payroll - often called ‘Payrolling’. If you have chosen this option, you will not need to submit a P11D form for an employee if you’re paying tax on all their benefits through your payroll.

Here at 2020 Accountancy, we understand the time it takes to keep accounts and finances up to date, especially when you’re a contractor or freelancer trying to juggle everything that a small business has to manage. That’s why we want to make your working life easier by managing your accounts for you.

If the idea of a P11D sounds complicated, or there are other finance issues that you’re not sure about, we’d love help. Get in touch with us to see how we can help benefit your business and make your life a whole lot easier!

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