HMRC recently published its latest guidance regarding the reporting of employee benefits and expenses for 2021/22. As an employer, what do you need to know?
Deadlines. You’re probably aware of the approaching deadline for reporting details of benefits and expenses provided to employees in 2021/22. But in case it’s slipped your mind, the information must be provided on Forms P11D (or electronic equivalent) to HMRC by no later than 6 July 2022, along with a covering declaration Form P11D(b) . Any Class 1A NI contributions payable in respect of the benefits must be paid to HMRC by 19 July or 22 July if you pay electronically.
Decommissioned P11D service. There’s been a change this year to the process for completing and submitting Forms P11D and P11D(b) . One of the options previously available, HMRC’s interactive PDF, known as the “Online End of Year Expenses and Benefits service” has been scrapped. Instead, you must submit the information and declaration via your HMRC “PAYE Online service” or by using P11D software (see The next step ).
Working sheets. HMRC has working sheets to help you calculate the amounts that need to be reported for the benefits with more complex rules such those for company cars, cheap rate loans and employer- provided accommodation. All the worksheets have been updated for 2021/22 (see The next step ).
Exemptions. HMRC is also reminding employers that some employee benefits and expenses that would normally be reportable were exempt for 2021/22. The temporary exemptions relate to payments and costs related to coronavirus and the lockdowns (see The next step ). The precise terms of the exemptions often aren’t as straightforward as they seem at first sight, especially those relating to homeworking. Tip. To avoid HMRC enquiries and possible penalties, if you’ve provided benefits you think might be exempt it’s advisable to check that all the conditions are met before omitting them from your Forms P11D .
HMRC’s interactive PDF Form P11D is no longer available. Instead, use your HMRC PAYE Online account or software to submit the information. Don’t overlook the temporary exemptions relating to coronavirus-related benefits.
The next step
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