The time has come again to report all employee expenses and benefits during the year up until the 5th of April 2022. This reporting process, known as P11D, was initially named after the number of the relevant HMRC form; however, in recent times, this report has become a function within payroll software.

Completing Your P11D Form

For some time, HMRC has been encouraging people to avoid using the paper P11D form. While a few years back, they provided an interactive PDF allowing employers to submit their information online, this proved problematic, so it has now been scrapped.

This year, the P11D report must be completed by the 6th of July 2022 and to overcome past issues, three options have been made available:

  • HMRC’s PAYE online for employers service (for up to 500 employees)
  • Commercial payroll software
  • The paper P11D form

We recommend opting for one of the online options as paper forms can easily be lost in the HMRC system. As with all documentation, our team can help you with P11D reporting, making a typically complicated process hassle-free.

Adding Regular Employee Benefits

If you have any regular employee benefits (such as health insurance or cars), it may be worth ‘payrolling’ these. This means adding the cash equivalent of the benefit to the employee’s pay; the employee will then be charged income tax but not NIC on that amount. As the employer, you will pay Class 1A NIC on the value of the benefit after the end of the tax year.

To ensure that you can payroll any benefits, you will need to apply to HMRC online before the start of the year from which payrolling will apply. Again, we can guide you through this, so please do not hesitate to get in touch.