The forms P11D, and where appropriate P9D, which report employees and directors benefits and expenses for the year ended 5 April 2012, are due for submission to HMRC by 6 July 2012. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.
Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.
HMRC have issued some guidance as to common errors on the forms in the latest Employer Bulletin. These include the following:
HMRC has a number of task forces to investigate certain business sectors, A summary of the current work of those task forces can be found below, each task force will move on to a new geographical area once the first area has been investigated.
This task force is investigating commercial property deals in Greater London, where the VAT rules may not have been applied correctly. Where they find this is the case, the HMRC officers will review the entire tax compliance of the property owner, across all taxes. Landlords HMRC are targeting landlords with three or more let properties in the North West of England and North Wales. Have you or your family correctly declared all of your rental income?
The targets are self-employed builders (including small companies) in the North West of England and North Wales. The task force is looking for under-declared sales (such as cash jobs) and over-claimed expenses (where there are no supporting invoices). Remember to keep every receipt for purchases and keep a log of all business mileage. We can help you by advising what expenses are allowable to claim against your income.
No Tax Return Submitted
This task force is operating in the South East of England, looking for businesses who have not submitted tax returns for corporation tax, VAT, PAYE or income tax.
Licenced Accountant in Brighton