Declaring Expenses and Benefits on Form P11D and P11D(b)

There are two forms that need to be submitted by employers:

  • The P11D, which is given to the employee;
  • The P11D(b), which is provided by the employer to HMRC and details any Class A National Insurance Contributions (NICs) due on any benefits and a declaration that the forms have been completed correctly.

 

As a contractor, you will be required to complete both of these forms, if you receive non cash income from your employment, such as benefits and expenses. These forms provide HM Revenue & Customs with information of benefits received, which will be cross referenced against the tax return to ensure that all benefits and expenses are being declared.

Who should complete a P11D?

The P11D’s are completed by employers, which means as a contractor claiming expenses or receiving benefits you will need to complete this form.

It is vitally important that the forms are submitted on time to HM Revenue & Customs. The P11D form covers benefits and expenses claimed during the tax year ending 5 April. The form has to be submitted to HM Revenue & Customs by the 6 July, following the end of the tax year, and payment of the Class 1A national insurance has to be made no later than 19 July.

Items to be included on the P11D

In addition to benefits provided by the company. such as company cars or private medical insurance, other items must also be included like reimbursed expenses. Directors of Personal Service Companies may incur business expenditure but pay such expenditure from personal funds. They then submit a claim to their company to be repaid the cost of the expense. The amount then has to be declared on form P11d as a taxable benefit. Any expenses paid directly by the company, for example by use of a company credit card, do not form part of the P11d entries.

Below is a list of just some of the items that would need to be included on the form P11D:

  • Company Car;
  • Fuel;
  • Private Medical;
  • Telephone;
  • Travelling Expenses;
  • Entertaining;
  • Subsistence;
  • Vans;
  • Accommodation;
  • Loans;
  • Subscriptions;
  • Private Use of Company Assets;
  • School Fees;
  • Accountancy Fees
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