In last week’s newsletter we looked forward to the P11D submission deadline on 6 July 2015. If the forms aren’t due you need to tell HMRC to avoid penalties. Taxpayers who avoid telling HMRC about CGT due will also be hit with high penalties, as we explain below. Finally we have news of a change in HMRC’s procedure for EIS investments which anticipates a change in the tax law.
To P11D or not
It’s the P11D and P9D season again. Those forms need to be submitted to HMRC by 6 July 2015 where expenses or benefits were provided to employees in 2014/15, which are not covered by a dispensation, or are not otherwise exempt from tax. If the P11Ds are not submitted on time, penalties will be issued.
But how does HMRC know whether a P11D/P9D is due to be filed? In pre-RTI years when completing the end of year form P35 you had to say whether a P11D was due. Those questions were carried over to the “final” RTI return, but from 6 March 2015 there has been no legal requirement to complete those end of year questions (see our newsletter 22 January 2015).
If you didn’t complete the “Is a P11D due?” question on the final FPS for 2014/15, HMRC may assume a P11D is needed anyway. To avoid any nastiness with automatic penalties you can tell the HMRC computer that no P11D/ P9D is needed and no Class 1A NIC is due by completing an online declaration (see link below).
The latest Employer Bulletin (no. 53) contains lots of tips for getting the P11Ds right first time, and its worth a read through as it contains some surprising facts. For instance, did you known that a P9D is not needed where an employee is provided with a medical benefit such as health insurance, and that employee earnsless than £8,500 per year?
This is an
extract from our tax tips newsletter dated 23 April 2015. The newsletter
itself contained links to related source material for this story and the
other two topical, timely and commercial tax tips. It’s clearly written
and extremely good value for accountants in general practice. Try it
for free by registering here>>>