Payroll insight
available on the GOV.UK website that may be useful. You must calculate the cash equivalent if you have provided benefits for: vans, interest-free and low-interest loans, relocation expenses, mileage allowance payments, living accommodation, and cars and car fuel. If, after submitting the P11D returns to HMRC, you realise there were errors or omissions in the data, you must resubmit a revised version of the return which must include all the benefits and expenses for the tax year, not just those being amended. The amendments must be made using a paper P11D return. For example, if the erroneous P11D return showed a medical benefit of £300 and a car benefit of £2,100, but the medical benefit should be £500, send a revised P11D showing both the medical benefit of £500 and the car benefit of £2,100. Remember that a change to the P11D values may alter the class 1A NICs amount so you must send a revised P11D(b) return. Include the total amount of class 1A NICs payable, not the difference from the previous version. For
example, if the original P11D(b) showed £10,000 in class 1A NICs payable but you forgot £500, the revised return should show the amount as £10,500.
to HMRC. To try and help prevent errors prior to submitting the returns, take time completing them and be mindful of the following errors employers have been known to make: l submitting a duplicate P11D in addition to an electronic version l using a paper form for the wrong tax year l forgetting to sign a paper P11D(b) l not ticking the ‘director’ box when applicable l not advising HMRC a ‘nil’ P11D is due l reporting the full gross value rather than only the private-use amount where a benefit has been provided for business and private use l not completing the fuel benefit box/ field where applicable. n Comment Completing P11D returns is a complex area, but if you are armed with the information and knowledge required prior to starting and take time and consideration when completing them paying particular detail to what is being asking for, then all should be well.
...difficult to rectify, and
Across the amended return write the word ‘Amendment’ and ensure you include the tax year for which the amendment applies. Send the amended return with a covering letter by post. Errors in returns may be difficult to rectify, and incorrect or late submissions can result in financial penalties. You are liable to pay £100 per fifty employees for each month or part month when P11D or P11D(b) returns are late. Penalties and interest are also payable for late payments incorrect or late submissions can result in financial penalties
P11D, expenses and benefits
One day
Designed to give delegates clarity and confidence about how to process the P11D, P11Db forms, PAYE Settlement Agreements (PSA) and net to gross calculations.
This course covers: ● Statutory requirements and implications ● Common errors when calculating company cars and fuel ● Childcare ● Beneficial loans ● Relocations ● Travel and subsistence expenses
● Vouchers / credit cards / tokens ● Gifts and awards ● Retirement benefits ● Salary sacrifice and tax / NICs changes from April 2017 ● Flexible benefits schemes ● Pay As You Earn (PAYE) settlement agreements ● Taxed award schemes ● Grossing up from net payment
● Other expenses ● Entertainment ● Telephones ● Subscriptions
● Key forms and dates ● Penalties and fines
Book online at cipp.org.uk or email info@cipp.org.uk for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
29
| Professional in Payroll, Pensions and Reward |
Issue 51 | June 2019
Made with FlippingBook - Online magazine maker