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Benefits in kind reporting deadline fast approaching

Published: 01/06/2018 By Drupen Patel

6 July 2018 is a key reporting deadline for employers who provided employees with taxable benefits in kind during the 2017-18 tax year or reimbursed employees’ business expenses.

What needs to be reported?

Common benefits include company cars, private health insurance and interest free loans. It is not possible to provide a comprehensive list and statutory exemptions allow you to exclude certain benefits and expenses so it’s important you check if unsure.
When?
P11D forms must be submitted to HMRC along with form P11D(b) by 6th July 2018 with all relevant employees provided with a copy on this day. Class 1A National Insurance at 13.8% must be paid by 19th July 2018 (or 22 July 2018 if paying electronically).

What goes wrong?
We often find employers completing P11D’s incorrectly by miscalculating the taxable value
or omitting information such as the fuel benefit where this applies. If you are late or wrong, penalties can be applied as follows:
Overdue:
If you are late there is an automatic penalty of £100 for every month for every 50 employees
Incorrect:
If a P11D and P11D(b) return is incorrect the penalty if based on the percentage of lost revenue and judged according to the taxpayers behaviour.
30% for carless action
70% for deliberate but not concealed
100% for deliberate and concealed

What next?
The complex nature of the rules governing taxable benefits along with the risk of being penalised for late submissions, errors, and omissions mean it is worth taking professional advice to make sure you are fully compliant with your tax obligations.