Closure Of HMRC Online Year End Reporting Service Relating To Employee Benefits & Expenses
Posted on 25th July 2022 at 13:16
HMRC announced last February that it was to cease its online end-of-year expenses and benefits (P11D) service, whereby allowing SMEs to create, edit and send P11D forms either electronically or by post. This service will no longer be available to submit these types of returns from the tax year 2021/2022 onwards.
The advice from HMRC is for employers to use the PAYE online service (information can be found via the link below), this service allows submissions for up to 500 employees, accessed via the government gateway.
The other alternative way to submit the returns is via eligible payroll software, the software must have the relevant functionality. By opting for the 'payrolling' option means avoiding the completion of P11D forms, however employers will need to register with HMRC Benefits in Kind (PBIK) online service in order to do so. With this option expenses and benefits are taxed via payroll on a monthly basis and require employers to know the cash equivalent value of each benefit by working out the Class 1A National Insurance contributions on benefits via the completion of form P11D(b). Streamlining this process can save considerable time and money, especially whereby there are a number of employees. Further details can be found via the link below:
In summary, our professional advice for employers is to:
Review core benefits ⇒ Retain key staff
Review Tax efficiency
Review process vs time and cost efficiency
For help and advice in regards to this or any other tax / accountancy matters, then please get in contact with us by completing the form below:
Whilst every effort in ensuring the accuracy of the content of these notes has been considered, we cannot be held responsible in any way in regards to any consequences and/or decisions arising from the information provided. For specialist advice tailored to your individual circumstances - please seek professional advice and contact us on the above details.
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