Common P11D Errors

1st June 2012

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The forms P11D, and where appropriate P9D, which report benefits and expenses for both employees and directors for the year ended 5 April 2012, are due for submission to HMRC by 6 July 2012.

Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A national insurance contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.

The following is taken from an article on expenses and benefits contained in the recent Employer Bulletin. The article includes a list of common mistakes which include:

‘The following is a list of common errors which are easily avoidable but delay

processing and cause problems with employees tax codes each year:

If you would like any help with the forms P11D or the calculation of the Class 1A liability please get in touch.

Internet links: HMRC P11D guidance Employer Bulletin

Posted – 01/06/2012