July 6 2016 reporting deadline for expenses and benefits in kind

06 July 2016

The recent edition of the Employer Bulleting highlighted common employer queries that they receive to the employer helpline.

Can you tell me what expenses and benefits are subject to Tax and National Insurance?

If you’re an employer and you provide expenses or benefits to employees or directors, you might need to tell HMRC and pay tax and NICs on them. HMRC have an A-Z on expenses and benefits to help you decide if you need to pay tax or National Insurance contributions on specific items you provide, or if you must report them on form P9D or P11D. 2015/16 marks the final year for reporting using a form P9D.

How do I make a Class 1A payment and when is it due? - How to pay Class 1A National Insurance

An electronic payment for Class 1A NIC declared on your P11D(b) return for the tax year ended 5 April 2016 must clear into the HMRC account by 22 July 2016.

Using the correct payment reference when paying Class 1A NIC will help ensure it is correctly allocated. To allocate the payment correctly use your 13 character Accounts Office reference followed by 1613

For example if your Accounts Office reference is 123PA00123456, you would use 123PA001234561613. The reference should have no gaps between the characters. When adding 1613 the 16 tells HMRC the payment is for the tax year ended 5 April 2016, and 13 lets them know the payment is for Class 1A NIC.

Do I need to tell you I have no P11Ds or P11D(b) due?

There is no longer a need to submit a declaration if your software package no longer includes the questions and declarations on the final FPS; you only need to tell HMRC you have no return to make if HMRC have sent you a P11D(b) or a P11(D)b reminder.

Which reference should I use?

You should use your employer PAYE reference on forms P11D, P9D and P11D(b). The 13 character Accounts Office reference (for example 123PA00123456) should only be used for payments of Class 1A NIC.

Toolkits to reduce common errors in returns

HMRC have a range of toolkits that aim to provide guidance on how to avoid making common errors that HMRC see in filed returns.

The toolkits are principally aimed at tax agents and advisers but they may also be of interest to employers. The most relevant toolkits for employers on the subject of expenses and benefits in kind is Expenses and Benefits from Employment Toolkit.