Have you paid yourself, or your staff, any extras through your company over and above a salary or bonuses? If so read on to find out what you need to know and how to submit a P11D to HMRC.
The most obvious extras are cars and private health care, but the less obvious are gift vouchers given as a Christmas or Birthday present. These must be declared to HMRC each year by 6th July following the tax year (6th April to 5th April). NI is also due on the benefit in kind (ie. the extras) and must be paid by 21st July.
For more information on what HMRC consider an extra that must be declared visit: https://www.gov.uk/employer-reporting-expenses-benefits
To submit the P11D
Either speak with your payroll provider or if you do your own payroll you can file directly through your HMRC account.
How to submit a P11D to HMRC
Log on to your Business Government Gateway account.
- Go to PAYE
- File a Return
- Online Forms
- add Employee (if you or your staff member is not listed). Once added all employees required
- Click on the employee who has received the benefit in kind (ie. extras)
- P11D Expenses and Benefit
- Enter details
Once done, click Next, then Next again. Then go to P11D(b) to submit – you can still review it beforehand.
- Add value, click calculate
- Then tick both boxes
- Print before submission to (1) check, and (2) have a copy
- Once happy, submit.
If any of the benefits in kind (ie. extras) are for you as Director, please ensure you add the benefit in kind value to your personal tax return.
The employee doesn’t need to add the benefit to their tax return if they receive no other income and don’t usually submit a tax return (ie. they only receive their salary). HMRC will adjust their tax code accordingly and the tax due will be collected through payroll.
Finally, remember to pay the employer NI due on the benefit in kind by 21st July, from the business.
ABOUT THE AUTHOR
Helen Monaghan is the founder of HM Finance Coaching Ltd, a small accountancy practice that provides financial education and business mindset coaching to SMEs across the UK, in addition to accountancy services for limited companies in the UK. Helen is a Chartered Management Accountant, accredited NLP Practitioner & Finance Coach. With two degrees, she has authored three business books, which bring together psychology, finance, and tax to empower the reader about money.
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