P11D – Benefits in Kind
With everything that is going on in the world at the moment and with so many people’s routines being disrupted, it’s easy to forget that we are now in P11D season with the deadline for the submission of these being 6 July. Any Class 1 A National Insurance Liability is due by 19 July (or 22 July if paying electronically).
No announcements have been made about any deferment of submissions or payment (although this may come) therefore if you provide benefits, you must ensure that the P11D’s are completed as normal and all filing deadlines met.
As a brief reminder, a P11D is used to report certain expenses and benefits that are liable to tax. Typical benefits can include:
- Company cars
- Company car mileage allowances and fuel
- Company vans for private use
- Private car mileage allowances and fuel
- Motorcycles for private use
- Payments for use of home telephones
- Non credit card expenses payments
- Credit card expenses payments
- Working from home
- Private medical insurance
- Beneficial loans
- Living accommodation
- Assets transferred
- Other items, such as childcare costs, late night taxis
If you require any assistance in dealing with your P11D’s we are here to help. Please contact your usual point of contact or a member of our dedicated P11D tax team.
Employment Related Securities
A lesser known reporting requirement exists for gifts and awards of shares. Often known as employment related securities (ERS) such gifts/awards are commonly used by employers to reward, retain or provide incentives to employees. They can be tax advantaged or non-tax advantaged.
If new shares have been issued in your company, by way of a gift or award, it is possible that this may need to be declared to HMRC. Reporting requirements are similar to the P11D deadlines in that all such returns must be submitted by 6 July.
If you have issued new shares in your company and want to check if a declaration is required, please contact your usual point of contact or a member of our tax team who can assist you with your enquiry.