Know More About P11D Deadline and Submission

Submitting a P11D form before the deadline is even more important than filing it correctly. Without following the P11D deadline as fixed by the HMRC, the employer will be penalised with fines. Naturally, every employer would like to avoid such a scenario, so we have created a complete guide that will assist employers and accounting practices to complete their P11D paperwork beforehand.

What is P11D, and When is its Deadline?

P11D is a tax form which employers use for recording the benefits and costs paid to their employees in addition to their regular salaries. This form is submitted only after the tax year to declare any benefits amassed during the period. Under the P11D, multiple benefits, such as health insurance, automobiles for business purposes, entertainment, travel, and so on, can be included.

The P11D form must be filled out accurately and within the deadline to avoid penalties and compliance issues with HMRC. With the help of the P11D form, the accurate amount of income tax can be calculated for the employees. To learn about the workings of P11D in detail, please read our blog – Understanding the Workings of P11D Form.

Regarding the P11D deadline, this form must be submitted by July 6^th just after the end of the tax year (dates are subject to change). The P11D and P11D(b) deadlines are the same; hence, it is essential to keep that in mind to avoid penalties. Understandably, your clients will find managing the submission of P11D and P11D (b) forms difficult and have entrusted this responsibility to accounting practices like yours. However, managing vast volumes of these forms of multiple clients will make your task difficult. In that case, you can outsource some of this work to a payroll outsourcing service provider that offers its payroll services such as Corient.

Importance of P11D (b) Form

The P11D (b) form is an additional declaration that must be submitted along with the P11D form. This form contains the total summary of Class 1A National Insurance contributions on benefits and costs listed on the P11D form. The P11D and P1D(b) forms must be submitted together to pay the right amount of tax. Payments of national insurance contributions must be made by 22^nd July online and by 19^thJuly by cheque (dates are subject to change).

How to Report?

The P11D has to be filled out by each employee employed by your client, and it contains each benefit and expense enjoyed by them. Through this form, the HMRC will change the PAYE code, thus ensuring the right amount of tax is paid. On the other hand, P11D(b) is a declaration from your client employer that all the P11D forms are accurate. This also authenticates the total Class 1A National Insurance Contributions owed.

A Step-by-Step Process of Submitting P11D Form

Collect All the Necessary Information

Your client employers must first gather all the relevant details of the benefits they gave to their employees in the tax year. The details include benefits offered to each employee, expenses covered by employers on behalf of their employees, and the National Insurance owed.

Form Filling

All the collected benefits and expenses must be included in the P11D form available with the HMRC.

Calculate Your National Insurance

Once your client employer has completed filing the form, it can calculate the Class 1A National Insurance contributions to the benefits offered to their employees.

Affirm its Accuracy and Submit it

Once your client confirms the P11D form’s accuracy, it can be submitted to HMRC.

Provide Detail to Employees

Once the form is submitted, copies of the P11D form must be sent to each employee. Furthermore, employers must also pay Class 1A national insurance contributions based on the declarations made on the P11D (b) form.

Pay Class 1A National Insurance Contributions

Lastly, payments of Class 1A National Insurance must be made based on the expenses declared in the P11D (b) form. The deadline for payment is 22^nd July for online payments and 19^th July for cheques (subject to changes).

Now, we understand that submission of the P11D form is a time-consuming process, and time is something your clients cannot spare. That’s why they have entrusted this task to you. Even accounting practices can be overwhelmed by handling P11Ds for multiple clients and the complexities involved. To avoid work overload, consider using payroll outsourcing services from professional providers like Corient.

Penalties for Late Filing

If the P11D deadline is missed, your client faces a £100 penalty per 50 employees per month, with rates subject. Penalties apply for incorrect information on the form, whether intentional or accidental.

Conclusions

In this guide, we have dived deeper into the P11D deadline, P11D(b), and how to submit it. This guide helps you and your clients handle P11D and P11D(b) filing and submission effectively. If overwhelmed with multiple P11D forms, consider outsourcing to Corient’s payroll service for efficient management. For more details about our services or to explain your requirements in detail, please contact us through our website.