Don't miss the P11d Deadline!

HMRC has changed legislation from 6 April 2023 to mandate the submission of P11D and P11D(b) returns online. Legislation has also changed to mandate the submission of any amended returns using a new electronic form that can be accessed through the expenses and benefits for employers page.

HMRC will no longer accept paper P11D and P11D(b) forms, this includes lists. The paper form will be rejected on the basis that it has not be submitted to HMRC in the correct way. The employer or agent will be notified of the rejection and directed to the correct process.

You will need to tell HMRC about any Class 1A National Insurance contributions that you owe for the tax year ending 5 April 2023 by 6 July 2023 at the latest. You will also need to file any P11D returns on or before 6 July 2023, failure to do so may result in a penalty. Any Class 1A National Insurance you owe must reach HMRC on or before 22 July 2023.

Employees should also be given a copy of their P11Ds on or by the 6th of July to let them know how much each benefit they received throughout the year is worth.

What if you miss the deadline?

It is not uncommon to overlook the deadlines for submitting P11D and P11D(b) forms. Nonetheless, employers should be aware that failing to meet these deadlines can result in penalties.

Penalties for late forms P11D are outlined in Section 98(1)(b) Taxes Management Act 1970:

• a maximum initial penalty of £300 per form, for failure to submit forms P11D. HMRC needs to make an application to the First Tier Tribunal who can decide whether to impose these penalties.
• continuing penalties of a maximum of £60 per day thereafter, until the failure has been remedied. These penalties can only be considered after an initial penalty has been imposed by the Tribunal.

Late submission of a P11D(b) form can lead to penalties amounting to £100 per 50 employees for each month or partial month of delay. In addition, employers may face penalties and interest charges if they fail to remit National Insurance Contributions (NICs) to HMRC on time.

Watch the webinar about submitting your P11D and P11D(b) online.

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