A P11D is a form prepared for each employee, each tax year. This is a return (declaration to HMRC) of the expenses and benefits of directors and employees.
P11Ds are not needed by sole traders and partnerships that have no employees. For all other businesses, not for profit organisations and charities P11Ds do have to be considered.
Any director or employee that has been provided with any travel, subsistence, telephone or other expenses of a personal nature must complete a P11D. This is so even if the expenses are entirely business related and not private.
If certain systems are in place we can apply to HMRC for a dispensation for you from completing P11Ds where no tax is due. Without the dispensation, failure to complete a P11D can result in a penalty of £100 per month for each month it is late.
P11Ds are straightforward so long as the issue of benefits and expense claims has been considered throughout the year. We can prepare P11Ds from the information you provide and can assist in analysing your records to ensure everything is properly reported.
Please contact us if you require advice on P11Ds or would like more information on applying for a dispensation from having to complete these forms each year.