When it comes to end of year forms, completing the P11D is one of the most dreaded tasks. You keep putting it off. When you do get round to it, if you get it wrong and the Revenue is likely to show no mercy, in fact they are tightening up their procedures right across the board and now carry out more inspections than ever. At the top of their agenda is checking that you have reported all of the expenses paid and benefits provided for directors and employees alike.

A P11D employee is one who is earning at a rate of at least £8,500 per annum (including benefits) or is a company director even if earning below this rate, to ensure compliance it is recommended that a form should be completed for all directors whether they have taken a benefit or not.

The forms must be with them by today 6^th July 2010, with the deadline for paying any resulting Class 1A National Insurance being 19^th July 2010, to avoid any penalty and interest charges. A penalty of up to £3,000 can be applied, even if the submission is made on time, if the subsequent submission proves to be faulty.

Where do I turn for help? The Revenue publishes its view and guidance on expenses and benefits on its website’ For:-

1. The P11D Guide (2010), see www.hmrc.gov.uk/guidance/p11dguide.pdf- 4 page document.
2. Booklet 480 (2010): Expenses and benefits. A tax guide, see www.hmrc.gov.uk/guidance/2010/480.pdf- 105 page document.
3. CWG5: Class 1A National Insurance contributions on benefits-in-kind, see www.hmrc.gov.uk/guidance/2010/cwg5.pdf- 36 page document