With less than a month until the deadline for P11D and P11D(b) forms on 6 July, HMRC is warning that the employers need to ensure the forms are correct on first submission otherwise employees will be given the wrong tax code and may end up paying too much tax.
Mistakes made on P11D forms cannot be corrected quickly, HMRC warns: ‘Remember it’s important that you complete your forms P11D correctly the first time. If you make a mistake, it’s time-consuming to correct it and your employees will pay the wrong tax in the meantime.’
The introduction of real-time tax coding means that all employees will have to check their tax codes on a more regular basis to ensure that HMRC has not changed their tax code unexpectedly mid-month, particularly for those receiving one-off income such as dividend payments or annual bonuses or commission payments.
If you paid any benefits and/or non-exempt expenses, you need to file a P11D(b). Include the total benefits liable to Class 1A NICs, even if you taxed some or all of them through your employees’ pay.
Send a P11D for each employee in receipt of benefits and/or non-exempt expenses, unless you registered with HMRC online before 6 April 2016 to tax them through the payroll.
You can access the HMRC Expenses and Benefits from Employment Toolkit 2016-17 Employers' end of year forms and 2017-18 record keeping on this link.
