Employment Benefits in Kind Returns
Do you provide your employees with any benefits as a perk of the job, or make regular payments to directors that could be classed as a loan?

If the answer is yes then as an employer you are required to complete the required forms and submit them to your tax office by 6 July 2019.

If any company directors have an overdrawn account over £10,000 at any point in the year where loans were made and not repaid, or the dividends are not being declared on the 2019 tax return it needs to be reported.

Most benefits in kind attract Class 1A NIC and form P11D(b) is used to calculate the Class 1A NIC due by the employer.

On the P11D forms, the benefits have to be divided into two types to facilitate the tax and National Insurance calculations that follow. Some items reported on the form do not create a tax charge others do.

Tax and National Insurance is not charged if the expenses are wholly and exclusively for business.

However any other Benefits in Kind (company cars, medical insurance etc) would need to be reported.

The Class 1A NIC charged on company benefits provided by an employer in the year ended 5 April 2019 is due for payment on 19 July 2019. If it’s not paid by that date, the tax office will charge interest.

Do not ignore this and get the returns filed as soon as possible as there is a penalty of £100 (for every 50 employees) if the forms are not received by 6 July 2019, with an additional £100 penalty for each further month late.

We would be pleased to offer assistance in completing these forms so please contact us to see how we can help you.

Get in touch - If you'd like to find out more about how we can help you and your business pay less tax, generate more profits and create long-term wealth for you and your family, please get in touch now