Don’t lose out on Child Benefit available to children in further education – Accountant in Wimbledon
Parents of children aged 16 to 19 who…
The deadline of July 6 for reporting expenses and benefits to HM Revenue & Customs (HMRC) is fast approaching. It’s essential for all employers to understand their responsibilities regarding this crucial tax form. Whether you’re an experienced business owner or new to the world of employment taxes, our Wimbledon accountants are here to guide you through the essentials.
A benefit in kind (BIK) refers to any non-cash benefit provided to employees that has monetary value. These benefits are additional perks that go beyond regular salary and wages. Common examples include company cars, private health insurance, interest-free loans, and gym memberships. While these perks can boost employee satisfaction, they are considered taxable benefits by HMRC.
The P11D form is required by HMRC to report these benefits in kind. Employers must complete a P11D for each employee who has received any taxable benefits or expenses during the tax year. This ensures that the correct amount of tax is paid on these benefits.
This is not an exhaustive list, but some common benefits provided by employers might include the following:
The deadline for submitting this year’s P11D forms is July 6, 2024. It’s crucial to meet this deadline to avoid penalties. If you are late in submitting, you’ll incur a penalty of £100 per 50 employees for each month or part month your P11D is late. You will also be charged penalties and interest if you’re late paying HMRC.
Many benefits require a payment by the employer of Class 1A national insurance. This payment is a substitute for the employer’s national insurance that would have been paid if the employee had received the same monetary value through payroll rather than as a benefit. This payment must be made by July 22 (or July 19 if paid by cheque), and penalties and interest can apply if you’re late paying. If you are already ‘payrolling’ your expenses and benefits, you may have already paid all or most of the amount due.
Completing the P11D form involves the following steps:
By staying informed and organized, you can ensure that your P11D forms are completed correctly and submitted on time.
If you need assistance or have any questions, don’t hesitate to get in touch with our Wimbledon accountants. We’re here to help you navigate the complexities of tax compliance, allowing you to focus on running your business.