P11D forms – don’t get them wrong – common errors
HMRC have published a list of common errors in the completion of forms P11D and guidance that medical benefits for lower paid employees are not reportable. The information is part of the lengthy Employer Bulletin so we have reproduced the guidance below.
The following is a list of common errors which are easily avoidable but can delay processing and cause problems with employees’ tax codes each year:
- Submitting duplicate P11D information on paper where P11D information has already been filed online to ensure ‘HMRC have received it’. These duplicates can cause processing problems
- Using a paper form that relates to the wrong tax year – check the top right hand corner of the first page
- Not ticking the ‘director’ box if the employee is a director
- Not including a description or abbreviation, where amounts are included in sections A, B, L, M or N of the form
- Leaving the ‘cash equivalent’ box empty where you’ve entered a figure in the corresponding ‘cost to you’ box of a section
- Not correctly completing the declaration on the final FPS/EPS submission (for those employers operating PAYE in ‘real time’) or the box in Part 5 of form P35 (Employers Annual Return) to indicate whether or not P11Ds are due
- Where a benefit has been provided for mixed business and private use, entering only the value of the private-use portion – you must report the full gross value of the benefit
- Not completing the fuel benefit box/field where this applies. This means an amended P11D has to be sent in
- Incorrectly completing the ‘from’ and ‘to’ dates in the ‘Dates car was available’ boxes. For example entering 06/04/2013 to 05/04/2014 to indicate the car was available throughout that year. If the car was available in the previous tax year, the ‘from’ box should not be completed and if the car is to be available in the next tax year, the ‘to’ box should not be completed i.e. left blank.’
The Employer Bulletin also includes guidance on a common error relating to the incorrect completion of a form P9D in relation to private medical insurance provided to lower paid employees. The HMRC guidance states:
Are You Completing P9D’s Needlessly for Employees in Receipt of Medical Benefit?
Do you know that if your employees earn less than the rate of £8,500 AND you arrange and pay the provider directly for the treatment or insurance a P9D does NOT need to be completed.
For more information go to www.hmrc.gov.uk/payerti/exb/a-z/m/medical-treatment.htm
If you would like any help with the completion of the forms or the calculation of the associated Class 1A National Insurance liability please get in touch.