25 May 2016
The three main areas for producing P11d’s for an employee have, from our experience, been in cases where that employee had been provided with a car or van, private medical insurance or reimbursement of expenses.
Finance Act 2015 s11 introduced a new Chapter 7A into ITEPA 2003, which now basically exempts, from 6 April 2016, amounts needing to be input onto the P11d of an employee, if those amounts would otherwise have been deductible. That would be fantastic news if it were left there but, in these times of being watchful over tax avoidance and evasion, there was a ‘but’ added, and that ‘but’ is that these rules will apply so long as there are no salary sacrifice arrangements in place around the payment of expenses.
Despite this massive simplification in the information that is required to be processed on a P11d, P11d’s are still very relevant as; firstly, the simplification applies for 2016/17 onwards and so 2015/16 forms need to be prepared in the ‘old’ style and secondly, if they are completed incorrectly the employer opens themselves up for a possible penalty.
The 2015/16 P11d’s need preparing and filing by 6 July 2016.
If you need any assistance in this regard then please do not hesitate to contact us.