It’s that time of year again… It is time to report the expenses and benefits provided to employees during the year to 5 April 2022. This process is widely known as the P11D after the number of the relevant HMRC form. Note that these days the report is normally a function within payroll software.

This year there are three options to complete the P11D report by the deadline of 6 July 2022:

  • HMRC’s PAYE online for employers service (for up to 500 employees);
  • commercial payroll software; or
  • the paper P11D form.

To be fully open, option 3 can be a bit risky. Paper forms can easily get lost in the HMRC system. Our accounting expertise means we can help you with (sometimes tricky) P11D reporting.

It may be worth considering ‘payrolling’ any regular employee benefits such as health insurance or cars. This involves adding the cash equivalent of the benefit to the employee’s pay and the employee will be charged income tax but not NIC on that amount. As the employer you pay Class 1A NIC on the value of the benefit after the end of the tax year. We can guide you on this and how to go about it.

In order to payroll any benefits, you need to apply to HMRC online in advance of the start of the tax year for which payrolling is to apply.

As Chartered Certified Accountants, we can most certainly help you with reporting your employee expenses and offer any guidance you may need.