The deadline to complete P11D is 6th July each year, and you’ll be happy to know that Chippendale and Clark have submitted all returns well within the deadline as a result of their new and efficient processes.
Throughout the year our team are always monitoring when new vehicles, medical insurances etc are being purchased within the accounts and bookkeeping. We then advise of the tax implications this has on directors and employees. One of many bonuses of having your records completed on a monthly basis!
We actively encourage all our clients to advise us before purchasing a vehicle as many individuals are unaware of the hefty tax bills that can accumulate as a result of purchasing a gas guzzling car within the business and using it for personal use.
When one of the Chippendale and Clark team notice a new benefit in kind, they will contact you to discuss the monthly fees associated with this calculation, explain the tax implications and answer any queries you may have.
At the end of the Tax year our records advise us that a P11D is due. Our P11D team will then gather the information from your accounts, bookkeeping or from you directly, to calculate the Tax due.
Once authorised by yourself we advise of the payment details and submit the form for you with HMRC.
As the Meercats would say, Simples!
Coronavirus effect on benefits
Some clients have asked what Coronavirus expenses are reportable as a benefit in kind, so we have outline below the non-reportable and reportable benefits.
Non-reportable benefits and expenses
The following benefits and expenses do not need to be reported to HMRC:
- a mobile phone that you contracted and paid for and provided for business or private use
- the cost of a broadband service if the employee did not already have a private contract for it, and it was needed for home working
- equipment, e.g. a computer, provided for business use (even if there is some private use)
- reimbursing an employee the cost of office equipment they bought because they were required to work from home because of the pandemic
- payment or reimbursement of the cost of coronavirus antigen tests
- providing or reimbursing an employee the cost of personal protective equipment needed for their job
- payment of up to £6 per week towards extra household costs where you agreed with the employee they could work from home.
Reportable benefits and expenses
The following do need to be reported:
- a payment which is in excess of £6 per week towards extra household costs where you agreed the employee could work from home
- payment for accommodation, e.g. a hotel, where an employee self-isolated away from home
- providing transport for an employee to travel between their home and their normal workplace (unless their home has also become a normal workplace)
- accommodation expenses if an employee was unable to return home after a business trip.
If you believe that you or your employees obtained a personal benefit from your limited company, and have not yet submitted a P11D, please contact us immediately.
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