Completing the annual return of benefits and expenses form P11D carries many risks. A late or incorrect submission, or failure to submit can result in unnecessary penalties and perhaps even result in a HMRC PAYE compliance review.
Therefore, as companies prepare their 2014/15 P11Ds for submission by 6 July, we highlight some common mistakes to watch out for:
General P11D completion
- Not reporting all expenses, irrespective of whether tax relief is available, where no P11D dispensation is held.
- In group structures the P11D dispensation has not been extended to cover all PAYE schemes.
- Expenses not reported for certain groups of employees e.g. directors, not included in the dispensation.
- Not advising HMRC that no P11Ds are due through the final EPS return for the tax year.
- Submitting duplicate P11D information on paper where P11D information has already been filed online.
- Using a paper form that relates to the wrong tax year – check the top right hand corner of the first page.
- Not ticking the 'director' box if the employee is a director.
- Not including a description in the appropriate box where amounts are included in sections A, B, L, M or N of the form.
- All P11D entries should be VAT inclusive, irrespective of whether the VAT can be recovered.
- Not including the cost of utility and related bills paid for accommodation even where the accommodation itself is exempt.
- Expenses for employees who work at home not reported where in excess of £4 per week.
- Home to work and other private mileage (e.g. call outs and excess fares) not reported.
- Reimbursement of an employee’s personal mobile phone bill not reported (exemption only applies to employer provided phones).
- Where company credit cards are used, expenses reported at both Sections C and N.
- Incorrect apportionment of private medical insurance where premiums renewed during the tax year.
- Overdrawn directors’ loan accounts not reported as a beneficial loan.
- Omitting entry at Section B Where PAYE on share option gains not recovered within 90 days.
- Pool cars used privately by employees not reported.
- Incorrect CO2 and/or fuel type for company car.
- Incorrect List Price values used for company cars (e.g. wrong model, ignoring accessories).
- Showing 5/4/15 in “To” box when company car continues to be provided into next year.
The deadline for submitting your 2014/15 Forms P11D and P11D(b) is 6 July 2015
If you have a Class 1A NIC liability as shown on the P11D(b) for 2014/15 the payment deadlines are as follows:
- postal payments 19 July 2015;
- electronic payment 22 July 2015.
For further information please contact our Employer's Support and payroll team