Employers will need to submit 2011/12 P11ds to HMRC by 6th July 2012.
The rules surrounding employee benefits are complex and it is very easy to miss reporting a benefit – leading to incorrect P11ds and, possibly even, penalties.
HMRC are increasing their activity in the form of visits to examine employers’ documentation which supports the treatment of expenses and benefits on P11ds. In particular, an Inspector will ask to see:
- Petty cash vouchers, purchase ledgers and expenses claim forms.
- Mileage records.
- Details of client and or staff entertainment events.
- Where fuel is provided for owner/user vehicles – records of reimbursement of fuel expenses.
- Analysis of directors’ loan accounts
The Inspector will target the documentation as a source of establishing additional tax and national insurance liabilities.
You need to be sure that your records are robust enough to support your payments of tax free expenses, claims that no private fuel or private use of vehicles should be charged and that no benefits arise to employees through client entertaining.
You also need to make sure you have reported all benefits and not omitted any.
If you would like assistance in completing P11d’s, or advice on benefits and expenses issues, dispensations or PAYE settlement agreements, please contact your usual tax adviser at PM+M or contact Julie Walsh on 01254 604312, or email Julie.firstname.lastname@example.org
Our new improved fee protection insurance for 2012/13 covers our costs in supporting you through PAYE visits by HMRC. If you are interested in fee protection insurance to cover our fees and protect you from the costs of dealing with such visits, do contact Julie Walsh.