P11D Penalties

P11D(b) must be filed with HMRC by 6th July, if HMRC do not receive it by the 19th July a penalty will be issued.  Penalties accrue for each month (or part month) that your P11D(b) is outstanding at £100 per 50 employee.

Failure to submit a P11D or P9D altogether can attract a maximum initial penalty of £300 per form, plus continuing penalties of a maximum of £60 per day thereafter.

You can apply to HMRC for a Dispensation to cover expenses or benefits for which your employee gets a full tax deduction.  This includes many routine business expenses and benefits (e.g. reimbursement of out-of-pocket expenses).  A Dispensation removes the requirement for an employer to report certain expenses and benefits at the end of the tax year on a P11D or P9.

For more about Dispensations, see our previous post here


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