Do you receive or pay your staff expenses or benefits?

Jun 4, 2014

The deadline is approaching for employers to complete and submit forms to HMRC to let them know the benefits that they have given to their employees.

If you are (a) a director, or (b) an employee and earn over £8,500 a year, and you receive any benefits from your company then you may have to pay tax on them.

HMRC use form P11d to calculate the value of any benefits, and will collect any tax due on them through the employee’s tax code.

The most common benefits which must be reported on form P11d are:

  • Company cars, vans and fuel
  • Private medical insurance
  • Interest free loans
  • Reimbursed expenses

Some of these benefits will result in a national insurance charge to the company, at 13.8% of the value of the benefit received by the employee.

It is an employer’s responsibility to calculate the value of any benefits and report these to HMRC using form P11d by 6 July 2014. Any Class 1A NIC due on these benefits must be paid by 19 July 2014.  Late filing of these forms will result in penalties being charged.

If you are unsure whether you need to prepare a P11d, or would like any help assessing the value of any benefits received to report on your P11d, please give us a call.

To find out more about how we can help your business in the future, please contact us for a free no obligation meeting.



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