If you have always prepared paper forms for HMRC then you have been provided with little notice that from 6 April 2023, HMRC will no longer accept paper amendments or submission of P11d and P11d(b) forms via paper, meaning you can only submit this information to HMRC electronically.
Submission may now be done either through using specialist software or by using HMRC’s PAYE Online service. Although it should be noted that HMRC are advising that any bulk amendments may not be possible with this service.
By 6 July 2023 you are required to provide details to HMRC of any employees or directors (including their families), who have received benefits (company car, private healthcare etc.), expenses payments, facilities etc.; during the tax year. This does not provide much time to find alternative methods of preparation and submission and consider what software options are available.
Preparation of these forms may not necessarily be complicated, but it can be difficult to determine the amount of the benefit and how it is taxed. For example, assets given to an employee may give rise to a taxable benefit, so too can payments made on behalf of the employee, cash vouchers, expenses paid by credit cards you provide, interest free loans, incidental overnight expenses, the list can seem endless. Then there are special rules to determine the amount of benefit provided as part of an optional remuneration agreement (OPRA) for example.
We can provide assistance to you in both preparing and submitting these forms if this is required.
Going forward you may wish to consider a move towards payrolling expenses and benefits. Simply put, payrolling is where an employer puts the taxable value of expenses through the payroll, removing the need for form p11d altogether. There are some benefits, which may not be put through payroll such as loans, but payrolling simpler benefits, such as healthcare, may be useful for your employee.
Employers will need to register online with the Government Gateway before the start of the year to payroll benefits and must receive agreement from HMRC before proceeding. It should be noted that Class 1A NICs on the payrolled benefits must still be reported via form P11d(b) which must still be submitted at the end of the tax year electronically. This is also something we can assist with. Please ensure you talk to our payroll department should this be of interest to you.
Should you have any queries regarding the changes and would like assistance please contact Diane Nettleton on 01633 653167 or by email – firstname.lastname@example.org. Alternatively please speak to our payroll department on 01633 810081.