Completing Forms P11D

Newsletter issue - June 2012.

It's time to complete forms P11D, to report expenses (which were not included in your dispensation agreement with the Tax Office) and benefits paid to your employees in 2011/12. The P11D details can be submitted online using the free HMRC software or using your own payroll software. Alternatively you can complete individual paper forms, or submit a schedule to the Tax Office containing details for all your employees. Whichever method you chose, the deadline is the same: 6 July 2012.

Be careful not to submit the same P11D details by two methods: say online and in paper form, as this will only confuse the HMRC computer!

Some other common mistakes made when completing forms P11D include:

  • Not ticking the 'director' box when required
  • Missing employee ID details such as date of birth, gender, and full name
  • Including expenses which have been covered by a dispensation
  • Incorrect calculation of benefits provided for part of the year, such as cars, vans and fuel. You should use number of days available/366 for 2011/12.
  • Restricting the list price value of a company car to £80,000. This cap has been abolished from 6 April 2011
  • Omitting the cost of accessories fitted to cars after delivery
  • Using the incorrect rate of interest for beneficial loans – it was 4% for the whole of 2011/12.

We can help you with your P11D forms, which can be quite a nightmare if you have lots of employees who received benefits or expenses.

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