Expense and benefits forms should be completed for each employee and director who have received expenses and/or benefits during the 2022/23 tax year. Class 1A National Insurance contributions should also be declared and paid by the employer.
The deadline for P11D submissions is 6th July 2023 with penalties levied for late or incorrect returns. The P11D payment deadline is 22nd July ’23.
What needs to be included in a P11D?
Any items the company pays for and that the employee benefits from need to be included on the P11D form. Expenses and benefits that need to be reported to HMRC include:
- Company cars & vans
- Employee loans
- Medical benefits
- Overdrawn directors loan accounts
- Vouchers given to employees
If we currently prepare P11Ds for you or we include the benefits in kind in your payroll, we’ll be in touch to ask for any information we need.
PAYE Settlement Agreement
A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on minor expenses or benefits for your employees. Examples of minor benefits and expenses include:
- Incentive awards
- Small gifts and vouchers
- Staff entertainment
You can apply to get a PAYE Settlement Agreement (PSA) online. HMRC will check what’s included in your PSA and if your request is authorised, you’ll get confirmation from HMRC & you’ll then be sent your PSA by post.
Employment Related Securities (ERS)
ERS schemes are a way of transferring shares to directors and employees of the company. Examples of tax-advantaged ERS schemes:
- Enterprise Management Incentives (EMI)
- Share Incentive Plans (SIP)
- Save as You Earn (SAYE)
- Company Share Option Plans (CSOP).
As an employer, you’ll need to register all new ERS schemes with HMRC and file an Employment Related Security (ERS) return each tax year by 6th July whether you transfer shares or not. So, for any company share transfers made in the 2022/23 tax year you have until 6th July 23. HMRC will impose penalties If you don’t submit a return on time.
If P11D compliance, or employer tax compliance in general is an area you’d like help with, our tax team can assist and advise. Curo is a full service practice and our offerings include audit, accounts preparation, corporate tax compliance & advisory, valuations, forensic accounting, Research & Development advisory, VAT, employments taxes, property transactions advice, succession planning, HMRC enquiries, shareholder tax advice, personal tax services including inheritance tax, trusts and probate. Our audit team also carries out grant audits and specialist audit work for academy schools and other non-corporate entities. Please take a look at our website to see what we can do for your business.
Please get in touch with Nicola to discuss how Curo can help your business and ensure it keeps up to date with all areas of tax and accounts compliance. Email [email protected] or call 01527 558539.