Payroll insight
submit P11D returns to HMRC. But to do this, employers are required to register to payroll prior to the start of the tax year. Although there are no P11D returns to provide, employers are still obliged: ● to submit a P11D(b) return to HMRC to advise of the amount of class 1A NICs that are due, and ● in place of a copy of the P11D return, to provide the relevant employees with
£3,000 per return. The table sets out the penalty regime that applies. Record keeping Employers must keep a record of the date and details of all expenses and benefits they provide to employees, how the taxable amount has been calculated, and details of any contributions employees make towards the benefit or expense. correspondence received from HMRC, remembering that records must be retained for three years from the end of the tax year to which they relate. n Further information ● CWG5 (2018) – Class 1A National Insurance contributions on benefits in kind (https://bit.ly/2HQwGXY) ● CWG2 (2018) – Employer further guide to PAYE and NICs (https://bit. ly/2sQ4D7C) ● Booklet 480 (2018) – Expenses and benefits – A tax guide (https://bit. ly/1JJUdUs) ● PAYE: end-of-year expenses and benefits (P11D) (https://bit.ly/1M3grlZ) Best practice also dictates that you should retain copies of any
a letter detailing the benefits in kind that have been payrolled along with their taxable value. Penalties The financial penalties that can be levied are graduated and relate to the behaviour that led to the inaccuracy. The more serious the behaviour the higher the penalty, with the maximum penalty being
...records must be retained for three years from the end of the tax year to which they relate
Penalty not exceeding £300 and daily penalties not exceeding £60 per day, per return can be levied for as long as the failure continues
Failure to submit P11D returns by due date
Up to £3,000 for each return
Incorrect P11D return
● First twelve months of lateness – A penalty of £100 per month, or part month, for each batch or part batch, of 50 earners for whom class 1A NICs is payable ● Over twelve months of lateness – A penalty not exceeding the amount of unpaid class 1A NICs due at 19 July A penalty not exceeding the difference between the class 1A NICs returned and the class 1A NICs that should have been returned
Failure to submit P11D(b) return by due date
Incorrect P11D(b) return
AGM18 Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting (AGM) of the Chartered Institute of Payroll Professionals will be held on Tuesday 4 December at 11.00 , at the CIPP, Arne Street, Covent Garden, London, WC2E 9RA . Ordinary business To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions: l Approval of minutes from AGM 2017 l To elect directors to the board l Approval of accounts for the year ended 30 June 2018 This is the Institute’s twenty-first AGM.
Notes The deadline for submitting further agenda items is 31 July 2018 .
Any member wishing to stand as a board director should send a completed nomination form and accompanying documentation, to be received by the institute secretary no later than 31 July 2018 .
l Election of auditors l Any other business By order of the board
Cliff Vidgeon FCIPP, Institute secretary Chartered Institute of Payroll Professionals Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, B90 4ZL
Attendance at the AGM is free for CIPP members. Should you wish to attend, please book via our website at cipp.org.uk
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 41 | June 2018
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