Return date for P11D and P11D(b) forms approaching

At the end of each tax year it is a legal requirement to inform HM Revenue and Customs (HMRC) of the particulars of any expenses payments, benefits and facilities provided to employees and directors and the amounts of Class 1A National Insurance contributions (NICs) you are due to pay for the year.
 
The return date for HMRC’s P11D 'Expenses payments and benefits' for 2012-13 and its P11D(b) 'Return of Class 1A National Insurance contributions due' is fast approaching on July 6.

When do you need a P11D?

By law you must file a P11D form if expenses payments, benefits and facilities are provided to:

Each employee or director earning at a rate of £8,500 or more a year, and

Each director earning at a rate of less than £8,500 a year, unless they are:
- a full-time working director with no material interest in the company, or
- a director of a charity or non-profit making concern.

You must also include any expenses payments, benefits or facilities provided to members of the director’s or employee’s family or household.

When do you need a P11D(b)?

To declare the amounts of Class 1A NICs you are due to pay for the tax year. You must complete this form if you are liable to return any expenses payments or benefits on your P11D form.
 
The P11D(b) form is split into four sections:

• Section 1 – the return of Class 1A NICs due for the year

• Section 2 – the declaration covering the return of Class 1A NICs and expenses and benefits

• Section 3 – provides important notes on the completion of the form

• Section 4 – for any adjustments necessary to the total benefits liable to Class 1A NICs as shown on forms P11D

From April 2013, taxpayers can use an online form to:

• Send a ‘No Return of Class 1A National Insurance contributions’. You do not need to use this form if you’ve already advised HMRC on your Employer Annual Return (P35), or on a real time submission, that completed forms P11D and P11D(b) are not due.

• Notify HMRC that you have payrolled all expenses and benefits provided to your employees and you now intend to send this P11D information online.

Payment of the Class 1A NICs declared on form P11D(b) must reach HMRC by July 22, or by July 19 if you pay by cheque.
 
Note: there are penalties for failing to make returns or for careless or deliberately incorrect returns on both forms.

Last updated: 28th June 2013