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Small and medium-sized businesses can reduce their tax-admin obligations by filing a single alternative to numerous forms P11D under certain circumstances, HMRC have confirmed.
If an employer has to detail a single benefit for up to 250 employees, one spreadsheet can be submitted to the Revenue rather than many P11Ds, said the department.
The spreadsheet should be sent as a hard copy, not electronically, advised Linda Pullan of Payroll Alliance, to avoid the possibility of tax officials having difficulty opening or printing the document.
Page 82 of Booklet 480 (2012), the taxman’s benefits and expenses guidebook, covers substitute forms and lists, stating, ‘The self assessment tax return was changed in April 2008 and the order of the boxes on the P11D no longer matches the order… on the self assessment tax return.
‘However, the P11D does still carry the same box numbers 9 to 16, alongside benefit or expense figures. We suggest that employers who supply P11D information on substitute forms or lists use the same order as on the P11D and use the same box numbers.’
The guidance continues: ‘If P11D information is presented to HMRC and employees in this way:
- the same format will meet both obligations;
- it will be easier for employees to complete their tax return correctly, if they get one;
- it will reduce the number of questions from employees to employers and HMRC; and
- it will help HMRC offices to process P11D information more quickly and efficiently.
‘This does not mean that HMRC will not agree substitute forms or lists which are not ordered in this way. We recognise that such a change could be costly or inconvenient for some employers.
‘Employers who have been given approval to use substitute forms or lists can seek advice on any proposed changes from their HMRC office.
‘A central approval service is available for substitute P11Ds which are copies, or very near copies of the official form and are expected to be sent to more than one HMRC office. Your HMRC office can give further details.’
Forms P11D, P9D and P11D(b) must reach the Revenue by 6 July following the end of the tax year. Payment of the Class 1A National Insurance declared on form P11D(b) must be received by the taxman not later than 22 July (19 July if paying by cheque).
