Why you cannot afford to overlook forms P11d

The P11d filing date is 6 July 2014, which this year falls on a Sunday, effectively giving 2 days less to complete and submit information.  Often seen as an administrative headache by many companies, the importance of P11d compliance is frequently overlooked as a consequence.

There are however, significant penalties for non-submission or incorrect forms P11d.  PAYE compliance is becoming more complex, and it is an area that HM Revenue & Customs view as a target for generating additional revenue, both in taxes and, more importantly penalties.  Consequently, all employers should ensure that their systems and procedures are robust, and would stand up to inspection.

Areas of common mistake include the treatment of company vehicles, pool cars, and the provision of benefits for staff.  Failure to declare payments made to staff for travel, subsistence and entertaining expenses often occurs where there is no private use, yet a dispensation has not been requested and obtained.  HM Revenue & Customs will pay particular interest in such payments and may charge a penalty even though there is no loss of tax.

Once your 2013/14 P11d forms have been filed, it may be worth considering whether you could:

•  request dispensations to reduce administration for 2014/15

•  consider alternative ways of rewarding staff which may not be taxable

•  consider whether changing vehicles might benefit the company and employees

•  look to make sure fuel is provided tax efficiently to ensure both the company and employees benefit