The 6th of July is the due date for employers to submit P11Ds declaring end of year (2019-20) expenses and benefits for employees and directors. The 6th of July is a fixed date for all employers to submit P11Ds; this date is not dependent on your company year.
With sections of the Scottish workforce still either on furlough or working from home, some employers are in a more difficult administrative position than ever before, but it’s still important to gather and submit P11D information ahead of the deadline.
Fines for late filing kick in at a rate of £100 per month or part month per 50 employees. And, where HMRC believes a company has acted carelessly in its filing or has deliberately misled to conceal liabilities, penalties of between 30% and 100% of the tax owed can be applied. It is an employer’s responsibility to notify HMRC if you have provided any benefits in kind to your employees and the list is long and diverse.
Looking ahead to your 2020/21 P11D declarations its likely that there will be increased diversity of benefits afforded to employees and directors resulting from the coronavirus pandemic.
Well-being benefits are now increasingly popular and may become even more so once the UK workforce fully returns to work following furlough or periods working from home – whether to their original workplace or remaining more permanently at home.
Cycling to work schemes are another area of growth as we’re encourages to eschew public transport. Under these schemes tax free bicycle loans or equipment are provided under salary sacrifice arrangements. However, employers should note that the conditions for well-being benefits being tax free are strict with the benefit normally having to be available to the whole workforce.
The provision of equipment to enable employees to work from home is likely to rise – with some being considered to be exempt benefits such as the provision of equipment, services and supplies to an employee who works from home if they are used only for business purposes and any private use is insignificant. The cost of additional household expenses such as gas or electricity charges- for which HMRC sets weekly and monthly limits - do not have to be reported under certain conditions outlined by HMRC.
But, if you are considering offering ‘quirkier’ employee benefits from free food and drink to days off for birthdays, Christmas shopping or volunteering or paid sabbaticals to movie and theatre tickets we’re here to advise you on the tax implications for you and your team.