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HMRC have published Employer Bulletin 53. Extracts follow.
Reminders for the new tax year
The van benefit charge exemption for zero-emission vans is being phased out between April 2015 and April 2020. From 6 April 2015 a special low rate of 20% of van benefit charge will apply for zero-emission vans. This will increase each year until 6 April 2020 when it becomes the same as the full van benefit charge.
HMRC have published Employer Bulletin 53. Extracts follow.
Reminders for the new tax year
The van benefit charge exemption for zero-emission vans is being phased out between April 2015 and April 2020. From 6 April 2015 a special low rate of 20% of van benefit charge will apply for zero-emission vans. This will increase each year until 6 April 2020 when it becomes the same as the full van benefit charge.
Since 6 April 2015, employers that hire people under the age of 21 no longer have to pay employers’ Class 1 secondary National Insurance on their earnings up to the upper secondary threshold. The employment allowance is not affected by this measure: the £2,000 allowance will continue to be deducted from any secondary National Insurance contributions the employer is due to pay.
From 6 April 2015 certain employment intermediaries should make a return of worker information every three months. This will only be necessary for intermediaries who have the contract with the end client.
Expenses and benefits
The bulletin lists some common errors made by employers when completing forms P11D.
These include:
- Submitting duplicate P11D information on paper when it has already been filed online. These duplicates can cause processing problems.
- Using a paper form that relates to the wrong tax year – check the top
- right-hand corner of the first page.
- Not ticking the “director” box if the employee is a director.
- Not including a description or abbreviation when amounts are included in sections A, B, L, M or N of the form.
- Leaving the “cash equivalent” box empty when a figure has been entered in the corresponding “cost to you” box of a section.
- Not advising HMRC either by paper form P11D(b) or electronic submission that there is no benefits in kind and expenses return to make.
- If a benefit has been provided for mixed business and private use, entering only the value of the private-use portion – the full gross value of the benefit must be reported.
- Not completing the fuel benefit box/field where this applies. This results in an amended P11D having to be submitted.
- Incorrectly completing the “from” and “to” dates in the “dates car was available” boxes.
Payrolled expenses and benefits
There is no formal system in place to payroll expenses and benefits in kind, but some employers do this under an informal HMRC agreement. They still need to send in forms P11D or equivalent lists and form P11D(b).
Employers must notify HMRC that payrolling has taken place before they start to submit P11Ds to avoid incorrect data processing of any payrolled P11Ds they wish to submit online.
If all expenses and benefits have been payrolled, this P11D information can be sent online or on paper. If sent on paper, all paper P11D forms or all pages of a P11D list, must be marked “PAYROLLED”.
Employers that payroll some but not all of their expenses and benefits can report the P11D information for expenses and benefits that have not been payrolled online or on paper. The information for expenses and benefits that have been payrolled must be sent on paper. This is because payrolled P11D information can only be sent online where everything relates to payrolled expenses and benefits.
All payrolled expenses and benefits must be declared even if the net cash equivalent is nil because the amount of benefit payrolled may be liable to class 1A National Insurance.
Other guidance
The bulletin also includes pointers on reporting PAYE correctly and on time, an article about the online payment service, information about shared parental leave and pay, and closing a PAYE scheme.
