P11D and P11D(b) deadline approaches

Employers have until 6 July 2019 to report employee benefits and expenses for the 2018/19 tax year.

Any taxable benefits must be reported before the deadline using P11D and P11D(b) forms.

Failing to meet the deadline could result in a penalty of £100 for every 50 employees for each month or part month the form is late, as well as interest on late payments to HMRC.

The deadline for paying any class 1A national insurance due is slightly later, on 22 July 2019 (or 19 July for those paying by cheque).

Recent research conducted by HMRC found that 84% of 1,528 employees interviewed had been offered at least one benefit in kind.

Around two-thirds (67%) had used one in the last year, but only 39% had used more than one.

Larger businesses were more likely to offer benefits in kind, with 87% of large firms doing so compared to 79% of micro and small businesses.

The five most commonly offered benefits were:

  • an annual party
  • free or discounted products or services
  • a mobile phone
  • parking
  • free or subsidised meals.

Talk to us about benefits in kind.