You can be fined for make a late or incorrect declaration.
Do you know that you are required to report not only on benefits in kind (which are taxable and usually also subject to NI contributions) but also on things like expenses reimbursed to directors and employees, even where these expenses are entirely business related?

The employee or director then shows the expenses as income on his/her tax return and claims the expenditure as a deduction. And after all that paperwork? Nobody pays any tax, making it one big bureaucratic exercise.

Would you like to avoid the hassle and cost?

You can get a dispensation from HMRC for most of the non-taxable items that normally have to be reported on the P11D - there are a number of conditions to be satisfied, and procedures that you need to have in place.

At Small Biz Accounts, we’ve designed a process to streamline your application for a P11D dispensation.

We will:
- explain the conditions that need to be satisfied
- help you to make sure that you have the processes in place
- complete the paperwork and submit it to HMRC on your behalf
- respond to any questions from HMRC

You will:
- no longer have to worry about P11D compliance for non-taxable payments
- simplify the self-assessment tax returns for your directors and employees
- reduce your bookkeeping and accounting costs for future years
- benefit from having an improved process for managing expenses

The cost is almost certainly less than the cost of collating and analysing the information required, entering it on the P11D, entering it on self-assessment forms, making sure that you claim the appropriate deduction, and so on.

To take the pain out of P11D, call us now on 0845 652 5220 or use our contact form.

What is P11D?

P11D is the name of a form that all employers are required to complete every year for every employee who receives a payment or benefit, other than payroll, from the employer.

Basically, most payments made to or on behalf of an employee/director, other than payroll, need to be reported on form P11D. This includes travels costs, subsistence, expenses, entertainment, health insurance, etc.

This means that you need to ensure that the appropriate information is recorded in your accounting system - otherwise you (or your accountant) will have to spend a lot of time trawling through your records to find the amounts that need to be entered on the form.

The deadline for submission is 6 July following the end of the tax year (e.g. 6 July 2008 for the tax year ending 5 April 2008)

If you need help completing your P11D or to organise a dispensation, please call us now on 0845 652 5220, or use our contact form.

Alternatively, you may find the guidance available from HMRC to be of use: Guide 480 covers Benefits in general (103 pages) and guide 490 deals with travel costs (a mere 86 pages).