What is P11D?
What is P11D form?
Each year, in addition to your annual submission of accounts and corporation tax, there are certain forms that UK employers need to consider. One of these forms is the P11D form.
A P11D is the form where the employer highlights to HMRC all the cash value of benefits given to employees (including Directors, so this inlcudes Self Employed Optometrist or Dispensing Opticians Directors) or taxable expenses which are not wholly and exclusively for business purposes (i.e. if they have been given a IPad but it also has personal use). These expenses are generally not subject to PAYE tax and therefore have to be reported to HMRC. There are fines for incorrect submissions (or non-submissions).
In a P11D you relay to HMRC the amount of any additional tax or Class 1A National Insurance due on the expenses and benefits.
If there is nothing to report (i.e. where no benefits / expenses have been paid) and you have received a form a P11D reminder, you can either submit a return as NIL or notify HMRC that you have nothing to report via the ‘2019-20 Employer – No return of Class 1A’.
What sort of expenses and benefits need to be reported for P11D?
It is essentially any taxable benefits/expenses provided for the private use of the director/employee - these are referred to as benefits in kind.
An example of taxable benefits is a gym membership - If paid via the business it is an expense which the business has incurred but has a personal benefit to you.
Below we have highlighted some examples of expenses/benefits which may need to be reported on a P11D form:
- Living accommodation
- Assets bought under the company but then used for personal use and the company is not reimbursed for it
- Miscellaneous costs, like taxis, childcare etc.
- Director’s loan
- Training which is not directly related to your work
- Credit card & Non-credit card expense payments
- Private medical insurance schemes
- Cars, vans and/or fuel provided by the company for private use (where vans are provided, incidental private use is allowed)
- Mobile phones (unless the contract is in company’s name)
Detailed HMRC guidance on all of the above can be found here.
If you have any questions in regards to the CJRS scheme or any other accounting related queries then feel free to drop me an email and I or someone from the Locumkit team shall get back to you - [email protected]
Locumkit Covid19 Grant for Employers
At Locumkit we want to be able to help you kick start your business again. Whilst we cannot compensate for loss of business or other key overheads but we can help you by saving you the costs incurred in agency fees encountered in sourcing locums – yes with Locumkit, pay NO agency fees for any Locum Optometrists and Dispensing Opticians sourced with us. This is our way of helping you, little it may be, to get going again.
To read our article on the second phase of Coronavirus Job Retention Scheme, click here.