Have you ever wondered about submitting a P11D? Now that we’re firmly into the new tax year, it’s a good time to begin looking at what P11D forms are and how to submit them as part of your own business management. As such, today’s guide covers everything you need to know about the basics of P11Ds, including what they are, how they work, and whether or not you’ll need to submit one.
What are P11Ds?
First of all, we need to briefly summarize what P11Ds actually are. A P11D is a type of tax form that is used for taxable benefits that have not already been covered by formal payrolling agreements or a PAYE settlement agreement. Some common examples of benefits that are covered by P11D forms include company cars and vans, memberships and insurance coverage, accommodation, and the like.
It is important to consider that not all benefits will necessarily be required as part of the P11D form. For example, any trivial benefits worth £50 or less may not need to be reported, so long as it’s not provided as cash or a cash voucher. Several additional regulations may also apply here; for example, the trivial benefit must not be provided as part of a salary sacrifice scheme. Make sure to review the requirements of the P11D before submitting to ensure all necessary benefits have been included.
Changes to P11Ds for 2022/2023
For 2022/2023, some of the rules and regulations relating to P11D forms have changed, and it’s highly important for businesses to keep this in mind as part of their decisions relating to taxation.
Of course, it’s worth noting here that the best approach to paying your taxes, if you’ve been feeling a little unsure, is simply to partner with a professional tax advisor for further support. Luckily, if you’re at all concerned by the new changes to the P11Ds for 2022/2023, our experts here at LiderTax will be around to help you find the most effective approach.
Increases in NI
One important change to remember is that the NI has increased by 1.25% for the 2022/2023 tax year, although this is set to be repealed in November 2023. As such, when calculating Class 1A taxes for P11D forms, you may need to use a blended tax rate of 14.53%. Don’t worry; your tax advisor can provide further information about this change. Fortunately, the difference shouldn’t make too significant a change in most cases, but it is highly important to be aware of the higher rate.
Another major change for the 2022 / 2023 tax year is that paper submissions will no longer be accepted. Accordingly, if you have been looking to submit a P11D, you will need to use online submissions systems to provide your P11D form. Fortunately, there are several ways to go about this, but it’s important to make sure your business manages to complete all submissions on time to avoid additional fees and charges.
Make Sure to Submit Forms P11D Online on Time!
The deadline for the P11D form is the 6th July following the completion of the tax year; as such, it is vitally important to submit all P11D forms before this time. It is notable that employees must also be provided with a copy of the P11D form (or the information contained therein) by the same deadline. Failing this can result in the business being fined around £100 for each month/part month past the deadline for every 50 employees.
An important change to the P11D submission rules for 2022/2023 is that these forms can now only be submitted online, rather than as a paper copy. As such, before you begin looking to submit your P11D, make sure you have arranged for online services.
How to Submit P11D Forms Online
If you’re ready to submit your P11D form online, there are two different options you could consider. Many brands choose to use an HMRC-approved software. However, it is also possible to submit your P11D using the HMRC PAYE online service. The latter is, of course, a free service, compared to commercial software that will often come with a charge; as such, it’s important to consider whether you’ll be able to submit this on your own or if you will need help.
In many cases, it may be easier to partner with a tax advisor who can help with all aspects of your business’s tax submissions. Luckily, this is where we here at LiderTax come in.