P11DS – EXPENSES PAYMENTS AND BENEFITS IN KIND RETURNS

A benefit in kind is a reward to an employee, which is provided in a form other than money. Such benefits are liable to tax for most employees, recognising that they are part of the overall salary package.

Employers who provide directors and or employees (who are remunerated at the rate of £8,500 a year or more including all expenses and benefits in kind) with expenses and or benefits in kind, under the self-assessment legislation are required to submit by 6 July forms P11D and P11D(b) to HM Revenue & Customs. If the forms are late, incorrect or incomplete the Revenue can impose penalties in respect of each form.

The returns are also required in respect of all employees and directors who have been reimbursed for expenses incurred by them in the course of business, such as travelling and subsistence expenses, business entertaining expenses where an HM Revenue & Customs dispensation does not exist.

The task is made all the more difficult by the growing complexity of taxation and employment legislation and the accompanying regime of penalties for non-compliance.  We can help your staff with understanding of benefit in kind, expenses payment, Class 1A NIC decalarations and the completion of P11D returns.

Alternatively we who can relieve you of this burden by providing a comprehensive and confidential service, including:

q       Preparation of the P11D return of expenses and benefits

q       Preparation of the P9D return of expenses and benefits (For employees earning less than £8,500 per year)

q       Calculation the Class 1A NIC liability

q       Preparation of the P11D(b) Employer declaration

q       Filing of the above returns with HM revenue & Customs.

q       Preparation of the claim for the deductions for expenses

We offer a free initial consultation to new clients to review their circumstances and requirements.