Soke Accounting

Streamlining Employee Expenses and Benefits Reporting

Tax season can be a headache, especially when it comes to reporting employee expenses and benefits. Here at Soke Accounting Ltd, we want to help make things easier for you.

This blog post provides a clear breakdown of your obligations to HM Revenue and Customs (HMRC) regarding employee benefits. We’ll cover what to report, how to report it, and key deadlines to keep you on track.

What needs to be reported?

HMRC requires employers to report any taxable expenses or benefits provided to employees. This can include things like:

• Company cars
• Private medical insurance
• Fuel benefits
• Meals provided by the employer

How to Report:

There are two main ways to report employee expenses and benefits:

• Payroll: If you pay for these benefits through payroll, the tax is automatically calculated and deducted throughout the year. However, you’ll still need to submit a form called a P11D(b) by July 6th to report the total Class 1A National Insurance owed on these benefits.
• P11D: If you don’t pay for benefits through payroll, you’ll need to fill out a separate P11D form for each employee who received taxable benefits. This form, along with the P11D(b), must also be submitted to HMRC by July 6th.

Important Deadlines:

Here’s a quick rundown of key deadlines to remember:

• Report expenses and benefits & provide employee copies: July 6th
• Report Class 1A National Insurance (P11D(b)): July 6th
• Pay Class 1A National Insurance: July 22nd (July 19th by cheque)
• Pay tax & Class 1B National Insurance (PAYE Settlement Agreement): October 22nd (October 19th by cheque)
• Pay PAYE tax or Class 1 National Insurance (payroll): Throughout the year via payroll

Penalties for Late Reporting:

Missing deadlines can result in penalties from HMRC. It’s crucial to file your P11D(b) forms on time to avoid a penalty of £100 per 50 employees, per month late.

We’re Here to Help!

Navigating tax regulations can be complex. At Soke Accounting Ltd, we have the expertise to ensure your employee expense and benefit reporting is accurate and filed on time. Contact us today to discuss how we can streamline your tax obligations.

Information and details taken from the HMRC website