Benefits in Kind encompass various perks and additional payments provided by employers to their employees, such as private healthcare, company cars, loans, gym memberships, and more.
These benefits are subject to taxation, and it is the employer’s responsibility to ensure they are documented on a P11D form.
This form must be submitted annually to HM Revenue & Customs (HMRC).
It is important to note that certain expenses should also be included on the P11D form.
However, due to the complexity of the rules surrounding different types of expenses, it is advisable to seek guidance if you are unsure.
The GOV.UK website provides an extensive list of expenses for reference and verification.
The deadline for submitting P11D forms for the 2022/23 tax year is July 6, 2023.
Acquiring a P11D form
In the past, P11D forms could be downloaded and sent by mail to HMRC. However, all submissions must now be made through the PAYE online service.
In some cases, employers may have all expenses and benefits taxed through their payroll, eliminating the need to complete a P11D form.
Avoiding penalties for missed deadlines and form errors
Penalties may be imposed if P11D forms are submitted after the July 6 deadline. A fine of £100 per 50 employees will be levied for each month or part of a month that the form is late, with additional fines if the issue is not resolved.
It is crucial to accurately complete the P11D form, as HMRC can penalise employers for any inaccuracies discovered later. Therefore, it is advisable to carefully review P11D forms before submission.
If you require assistance with completing or submitting your P11D forms or have any inquiries regarding BIK, please don’t hesitate to contact us.