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Expense and Benefit Reporting

Expense and Benefit Reporting

Now that we have finished the 2015/16 tax year, and are past the final RTI submission deadline (19 April), it is once again time to think about the reporting of expenses and benefits.

Director and employee benefits and expenses need to be reported using the forms P11D or P9D, by 6 July 2016. A form P11D(b) must be submitted to report the class 1A NIC due on the benefits provided. If there is no class 1A NIC to pay and the employer has received a form P11D(b), that form should be returned completed as “nil”.

There is no longer a box in the Basic PAYE tools software to say that no class 1A NIC is due for the year as that box was removed with the end of year checklist. However, it may still exist in other payroll software, in which case if no P11Ds are to be submitted that “no P11d due” box should have been ticked as part of the final submission for the year.

If you are not submitting any P11D forms for 2015/16 and haven’t been able to tell HMRC that you won’t be submitting those forms, you can tell HMRC using a structured online form. Alternatively you can make the “no P11Ds” declaration using the HMRC PAYE online service.

Where class 1A NIC is due it must be paid by 22 July 2016, or by 19 July if paying by cheque. When making an electronic payment for class 1A NIC the 13 character accounts office reference should be used with “1613” tagged on the end. The “13” tells HMRC this is a payment for class 1A NIC.

Where you have found items that need to be corrected for 2015/16 you should now use an earlier year update (EYU) to report those corrections, not an EPS. If your payroll software doesn’t include an EYU you can use the free Basic PAYE tools software provided by HMRC just for the EYU submission.

If you need any assistance with completing or filing your P11Ds or with making a PAYE adjustment, please contact us on 01689 877081 and ask for John Galvin if the query relates to P11Ds or Class 1A NIC or Sherry Ahmed for payroll and PAYE queries.

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