{"id":7581,"date":"2024-05-16T08:41:04","date_gmt":"2024-05-16T08:41:04","guid":{"rendered":"https:\/\/rjp.co.uk\/?p=7581"},"modified":"2024-05-16T08:41:04","modified_gmt":"2024-05-16T08:41:04","slug":"p11ds-are-changing-avoid-the-double-tax-trap-for-employees","status":"publish","type":"post","link":"https:\/\/rjp.co.uk\/p11ds-are-changing-avoid-the-double-tax-trap-for-employees\/","title":{"rendered":"P11Ds are changing; avoid the double tax trap for employees"},"content":{"rendered":"

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.<\/p>\n

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.<\/p>\n

Further changes are due from 6 April 2026, when keeping a payroll record of all benefits in kind (BiKs) will become mandatory.<\/p>\n

P11D changes could create extra admin<\/strong><\/h3>\n

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.<\/p>\n

Benefits that require \u2018off-payroll\u2019 recording<\/strong><\/h3>\n

Some benefits offered to employees can\u2019t be included in the payroll in real-time and these need to be included in a P11D. For example:<\/p>\n