P11D forms

Employers have until the July 6 deadline to submit their annual P11D and P11D(b) forms to HM Revenue & Customs (HMRC), to report relevant employee benefits and expenses for the 2017/18 tax year.

Ensuring that benefits and expenses are correctly treated for tax purposes and reported to HMRC can be complex, and recent tax changes have only added to that complexity – with the abolition of P11D Dispensations and introduction of new ‘Trivial benefits’ rules (April 2016) and new rules affecting arrangements with employees who can choose between a benefit or a cash alternative (April 2017).

PAYE Settlement Agreements

The July 6 P11D deadline is also the date by which employers can enter into a PAYE Settlement Agreement (PSA) with HMRC. PSAs enable employers to settle tax and National Insurance Contributions (NICs) on behalf of their employees on certain benefits or expenses, instead of reporting them on the P11D.

PSAs are particularly appropriate where any benefit is intended to be free-of-tax for the recipient (e.g. staff rewards or gifts) or where it might be difficult to apportion costs between employees (e.g. staff entertaining events or working lunches).

Garbutt + Elliott provide a comprehensive P11D and PSA service, and can advise on the tax and NIC rules in respect of benefits and expenses.

If you would like to discuss further, please get in touch with Richard Whitelock (rwhitelock@garbutt-elliott.co.uk) or Adam Wingrove (awingrove@garbutt-elliott.co.uk).