Any employee benefits or expenses that were given in the year up to the 5th April 2021 need to be reported to HMRC using the P11D process by the 6th July 2021. This should include every employee who received benefits or expenses, even if they have left the company. We have put together helpful information on submitting your report.
Which Employee Benefits Need To Be Reported?
If you have already accounted for the value of the benefits during the payroll process, then you do not have to complete a P11D for these employees. However, you will need to submit a P11D(b) to HMRC to report the class 1A NIC, which is due.
During 2020-21, many employees were given additional support to allow them to continue working safely throughout the pandemic. HMRC has introduced some concessions which ensure that employees are not taxed on this extra support.
In the instance that employees were working from home due to the workplace being closed or because they were self-isolating, particular benefits will not be treated as taxable. These include:
- Broadband internet connection if it was not already available
- Computer tablets, laptops and office supplies
- Reimbursing employees for home office equipment costs
- Working at home allowance of up to £6 a week
To allow the provision to be tax free, there should be no significant private use of broadband and equipment. However, HMRC has said that the private use measure should be based on the employee’s duties and the need for them to have the equipment or services provided to do their job.
We are able to help deal with P11D and P11D(b) and advise on what costs should and should not be included. Please contact our team for more information.