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If you work in payroll, you will appreciate that there is always one deadline or another to comply with. One of the most significant is the P11D deadline on 6 July, when details of all benefits in kind received by employees needs to be submitted to HMRC. In addition to the main P11D form, a P11D(b) needs to be submitted too. This records the class 1A national insurance contributions (NICs) that are due from the employer. Class 1A NICs should be paid in full by 22 July if you are set up to pay electronically, or by 19 July if you still pay by cheque.
On 6 April 2023, new rules came into operation requiring that P11Ds are submitted online only. Any employers wishing to continue with paper forms require special dispensation.
Further changes are due from 6 April 2026, when keeping a payroll record of all benefits in kind (BiKs) will become mandatory.
Currently some benefits cannot be processed through the payroll system and a separate P11D needs to be submitted to account for these even when other benefits for the same employee are accounted for via the payroll. This can mean extra work in administering two separate processes for the same employee.
Some benefits offered to employees can’t be included in the payroll in real-time and these need to be included in a P11D. For example:
The change requiring electronic submission of P11D forms will mean that any tax due will be payable in real time, because the tax codes for the employee can be generated in real time. This could cause issues for some employees who will need to pay any additional tax due on an ongoing basis rather than being able to declare the benefits in one tax year and then pay any tax due in the following tax year.
If you are an employer and have employees receiving these benefits, they will need time to plan for this in advance. One option could be to transition to the new system early, giving employees time to adjust to the changes.
In some situations, employees could be issued with a tax code that reflects the benefits they had enjoyed in the previous tax year, while at the same time paying for benefits they are currently receiving in real time through the payroll.
This will mean employees having double taxation during the transition year. And they may need support through this period.
If you would like help to manage the transition to digital P11D reporting or wish to discuss tax advantaged employee benefits and employee share schemes, please contact us via partners@rjp.co.uk.
I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team.
Dan Cook, Probate clientI just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office.
I Evans, CFO, MoblicitiJust a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks.
J Stanfield, Chairman, BBS Actuaries LtdI would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone.
M Goldsmith, Probate ClientRJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable.
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If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.