Reporting and Paying At the end of the tax year you need to submit a P11D form to HMRC for each employee you’ve provided with expenses or benefits. You’ll also need to submit a Form P11D(b) if: • you’ve submitted any P11D forms • you’ve paid employees expenses or benefits through your payroll • HMRC have asked you to, either by letter or email. The P11D(b) tells HMRC how much Class 1A National Insurance you owe on all the expenses and benefits you have provided. If HMRC have asked you to submit a Form P11D(b) and you don’t feel you owe them any Class 1A National Insurance, then you will need to fill out a declaration https://www.gov.uk/government/publications/paye-no-return-of-class-1a-national-insurance-contributions. Paying Tax on Benefits Through Your Payroll You can deduct and pay tax on most employee expenses through your payroll if you have registered with HMRC before the start of the tax year (being 6th April). Guidance can be found at https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll You don’t need to submit a P11D for an employee if you are paying tax on their benefit through the payroll. However, you will still need to submit a Form P11D(b) so you can pay any Class 1A National Insurance you owe. Reporting Different expenses and benefits are calculated and reported differently. To work out how to report and pay for an expense or benefit visit the HMRC website for guidance at https://www.gov.uk/expenses-and-benefits-a-to-z. Reporting to HMRC can be made via: • Commercial payroll software • HMRC’s PAYE Online service • HMRC’s Online End-of-Year Expenses and Benefits Service • Downloading and filling in forms P11D https://www.gov.uk/government/publications/paye-end-of-year-expenses-and-benefits-p11d and P11D(b) https://www.gov.uk/government/publications/paye-end-of-year-expenses-and-benefits-p11db Deadlines [table id=4 /]   Record Keeping You need to keep accurate records of all expenses and benefits you provide your employees in case HMRC ask for evidence on how you have calculated them. Your records also need to show that you’ve reported accurately and that your end-of-year forms are correct. You’ll need to keep records of: • dates and details of every expense or benefit you provide • any payment your employee contributes towards an expense or benefit • information needed to work out the amounts you put on your year-end forms.   S4B are a team of Chartered Accountants based in Maidenhead who can help you meet all your annual statutory compliance obligations. To see how we can help you contact us today on 01628 623444 or email us at [email protected]