It's that time of year again when we get in touch about reporting any expenses, payments, and benefits (such as cars, fuel, loans, medical insurance, etc.) made available to each director and employee during the tax year ended 5 April 2023.
Known as Form P11D, this Return needs to be filed before 6 July 2024.
We think this could apply to you - and we wouldn't want you to miss the filing deadline. Please read this email carefully and, if you need to complete Form P11D, please download our questionnaire and provide any information to us as soon as possible.
Completion of the P11D Questionnaire
To assist us with the submission of your Form P11D, please click here to download and complete a questionnaire with the information we require.
It is important that you indicate both the employer's and employee's name on the questionnaire to ensure the data is recorded correctly.
To ensure timely completion of your Form P11D, we ask that all information be forwarded to us as soon as possible, but certainly before the end of May, so that we can ensure as far as possible that all forms have been properly completed.
Information received after the end of May will not provide us with sufficient time to fully check the details that you have forwarded, so we would really appreciate you giving this matter your urgent attention. We cannot be held responsible for the late submission of Returns and/or any penalties which may be incurred.
Business Expenses
You are no longer required to disclose details of business-related expenses on Form P11D. However, if the company pays any non-business expenses, these will need to be disclosed and a questionnaire should be completed as appropriate for each relevant Director/employee and returned to us as soon as possible.
Optional Remuneration Arrangements (OPRA)
These rules apply to any employee who, in their employment contract, is offered either a specific cash allowance or the alternative of a benefit in kind. This could also possibly affect individuals receiving certain benefits in kind via a salary sacrifice scheme. This includes company car drivers who are given the option between a cash allowance and a company car.
In these cases, the taxable benefit is determined to be the greater of either the cash sum sacrificed (or salary exchanged) or the actual benefit in kind. Under the OPRA rules, the taxable sum on the benefit could be significantly more than that reported historically, so any such cases will need to be reviewed to determine the correct benefit in kind to be reported.
Pensions, childcare, cycle-to-work schemes, and ultra-low emission vehicles have all been confirmed as being excluded from OPRA and continue to provide tax and/or NIC savings.
Please let us know if you have any employees who may be affected by the OPRA rules when completing and returning the P11D questionnaire to us.
What happens if you miss the filing deadline?
If you submit the form late, miss the filing deadline, or submit an incorrect or incomplete P11D, HMRC could impose a financial penalty as follows:
Initial Penalty: up to £300 per Return
Continuing Penalty: up to £60 per day per Return
Incorrect Return: up to £3,000 per Return
Penalties are normally issued automatically, and we do not want you to receive one. If you need to complete a Return, please get in touch with us urgently.
We are here to help...
If you intend to prepare and submit Form P11D yourself, please let us know as soon as possible so we can update our records.
If you are in any doubt about a particular benefit or expense payment, please do not hesitate to get in touch with your usual Jerroms contact on 0121 693 5000.
