Next month employers providing any form of taxable benefit to employees will need to prepare and file P11D returns to HMRC. The annual deadline to file is 6 July 2021.
You will also need to provide employees affected with a copy of their P11D form by the same date. They will need this to check their tax account or to include on their tax return.
Unfortunately, there is one further chore to complete this annual process.
Employers are obliged to pay employers’ National Insurance contributions on the aggregate value of benefits provided to all employees. The way to do this is to complete a P11D(b) return; and again, this needs to be filed by 6 July 2021. NIC class 1A contributions are payable at 13.8% of the total benefits returned and are payable by 22 July 2021 if paid electronically or by 19 July 2021 if you pay by cheque.
Please do not miss the filing and payment deadlines otherwise you may trigger late filing penalties and interest charges.
Any Class 1A NIC paid is an allowable deduction for tax purposes.
If you require any assistance with the completion of these forms please contact your client manager.