Year-end matters for employers – what you need to know
Following on from our previous pre-year end briefing on employment matters and the changes to the P11D regime for the tax year 2016/17, it is now time to deal with certain matters now that the tax year has ended.
Annual Return of Expenses and Benefits – Forms P11D
All employers who provide their employees or Directors with benefits in kind are required to report these annually to HMRC on forms P11D or via a PAYE Settlement Agreement.
If you have provided any benefits or reimbursed any private expenses, then you must complete forms P11D for each relevant employee or Director as well as a Form P11D(b) for the company. You will only be able to accurately calculate the Class 1A National Insurance contributions due on these benefits once the forms are completed.
Both of these forms must be submitted to HMRC by 6th July 2017 and any Class 1A National Insurance due must be paid by 19th July (or 22nd July if you pay electronically). There are penalties chargeable if you miss this deadline as well as penalties for incorrect or incomplete forms.
If you think there are any relevant benefits or expenses to report for your company and you would like us to complete these forms for you, then please contact Yogi Dhanak for further information.
Employment Related Securities (Form 42)
Each year to 5th April, companies are required to report transactions to HMRC relating to shares, securities, and share options provided or issued to employees or directors. The deadline for this is also 6th July 2017.
This includes events such as allowing employees or directors to acquire shares (at market value or less) buying shares from employees at more than the market value, granting of options which are not in an EMI scheme, the exercise of options not in an EMI scheme, as well as other numerous events.
If you would like us to review any transactions or you have any reporting concerns please contact our Corporate Tax Director, Sarah Lockhart-White.