Benefits in Kind (BIK) cover a number of different perks or additional payments made by employers, to their employees, that have personal benefit for the worker. These can include, but are not limited to, any of the following:
- Private Healthcare
- Loans
- Company cars
- Gym memberships
- Subsidised meals
- Childcare vouchers
The above are all taxable benefits, and it is an employer’s responsibility to ensure they are noted on a P11D form, which is submitted to HM Revenue & Customs (HMRC) on an annual basis.
It is worth noting that certain expenses should also be added to the P11D form. However, there are many different types of expenses with their own complicated rules, so it is best to seek advice if you are unsure about what to report.
The GOV.UK website has an extensive list of all expenses, which can act as a good starting point to become familiar with what HMRC might expect to see.
The deadline for submitting P11D forms relating to the 2022/23 tax year, is 6 July 2023.
Obtaining a P11D form
In previous years, P11D forms could be downloaded and filed by post with HMRC, but any submissions now need to be made through the PAYE online service.
In some instances, employers will have all expenses and benefits taxed through their payroll, in which case there may be no need to fill in a P11D form at all.
Missing the deadline and form errors – Avoid paying the price!
Penalties can be incurred if you submit your P11D forms beyond the 6 July deadline.
A fine of £100 per 50 employees will be handed out for each month, or part month, that it is late, with further fines issued if matters are not resolved.
It is also important that the P11D form is filled in correctly, as HMRC can fine employers for any information that they later find to be erroneous.
Therefore, it is best to check over your P11Ds carefully before submitting them.
How can George Hay help?
If you need assistance completing or submitting your P11D forms to HMRC, or you need advice in relation to Benefits in Kind, contact us today.
