If you’re an employer and offer expenses or benefits to employees, then you need to inform and submit tax forms at the end of the tax year to HM Revenue and Customs (HMRC) for each employee.

However, there are different rules for reporting and paying the taxes which depends on the type of expense or benefit that you provide.

Depending on the expense and benefit, the form will either be a P9D or a P11D. Such forms can be used to correct an error for an expense or benefit reported in any tax year.

In case if you have submitted any P11D forms or you have received a P11D (b) from HMRC, you may also need to submit P11D (b) for reporting the amount of Class 1A National Insurance due on all the provided expenses and benefits.

With a declaration, you can tell HMRC that you don’t owe Class 1A National Insurance for not submitting any P11D forms. Both the benefits and expense for the tax year needs to be included on the form.

Even though you have already originally submitted form online, submitting a paper form is a must. As the forms will show the most recent tax year, you need to write a different tax year on the form if you are to report.

In the form, you must write the tax year you are making correction for and you are using the form for correcting an error made in the different year to the one stated on the form.

If you deliberately give inaccurate information in your tax return or over claim your tax return, you can be charged a penalty. Moreover, if you are paying late to HMRC, you can be charged penalty with interests.

The deadline for submitting P9D and P11D forms online to HMRC, the deadline is 6 July following the end of the tax year. The same date is also the deadline for telling HMRC about the amount of Class 1A National Insurance you owe on form P11D(b). And, for paying this amount, 22 July is the deadline.

The details about benefits and expenses that you provide to your employees must be recorded. Such records needs to kept for 3 years from the end of the tax year.

When reporting expenses and benefits, you need to calculate your employees’ earnings ‘at a rate’. And, some of these expenses and benefits are eligible for a dispensation where it covers travel, phone bills, etc.

If you want to discuss about expenses and benefits, then feel free to contact our accountants at 020 7060 9556.