Benefits in Kind (BIK) encompass various perks or supplementary payments made by employers to their employees.
These can include an array of taxable benefits, and it is the employer’s duty to ensure they are recorded on a P11D form and submitted annually to HM Revenue & Customs (HMRC).
It is important to note that certain expenses should also be added to the P11D form. However, with numerous types of expenses and their complex rules, seeking advice is recommended if you are uncertain.
The GOV.UK website provides a comprehensive list of all expenses if you need to verify.
The deadline for submitting P11D forms for the 2022/23 tax year is 6 July 2023.
P11D forms
In the past, P11D forms could be downloaded and filed by post with HMRC. However, submissions must now be made through the PAYE online service.
In some cases, employers might have all expenses and benefits taxed through their payroll, eliminating the need for a P11D form.
Deadlines and errors
Submitting P11D forms after the 6 July deadline may result in penalties.
A fine of £100 per 50 employees will be issued for each month or part month the form is late, with additional fines imposed if matters remain unresolved.
Ensuring the P11D form is filled in accurately is crucial, as HMRC may fine employers for any incorrect information discovered later.
Thus, it is advisable to thoroughly review P11D forms before submitting them.
For assistance with completing or submitting your P11D forms, including questions about BIK, please contact us today.
