The task of completing and filing P11D forms has traditionally involved lots of paper: receipts from employees and lists of benefits provided. It should now be possible to perform the whole task electronically, particularly if the employer’s expenses system is integrated with its payroll software.
One sticking point for paper communication has been the need to provide employees with details of the expenses and benefits data submitted to HMRC, and details of any benefits which have been payrolled. This doesn’t have to be a physical copy of the P11D. The employer is obliged to provide an end of year statement to each relevant employee, but this information can be provided as a summary on the employee’s payslip (which can be electronic). It doesn’t have to be printed as a separate letter as indicated in the April edition of HMRC’s Employer Bulletin.
The P11D filing process can be completed online using any of these routes:
- Commercial software- possibly part of the payroll package
- HMRC’s PAYE online service
- HMRC’s P11D online form
The software should pick up common errors, but the HMRC online services don’t calculate the class 1 A NIC due, which needs to be done manually or by other software.
If we regularly apply for a payroll settlement agreement (PSA) for you, the good news is that the PSA for 2017/18 may be the last one you will have to do. From 6 April 2018 any PSA already agreed with HMRC will remain in place until it is cancelled or varied by the employer or by HMRC.
Finally, look out for electronic notices (GNS messages in PAYE online) of late filing penalties for RTI returns, which will be issued in the week commencing 7 May. We explained the three-day grace period for filing the FPS, which applied for the whole of 2017/18, in our newsletter on 31 August 2017. We can appeal against the penalty on your behalf.
Written by the Tax Advice Network