The deadline for filing forms P11D is 6 July 2016. You will be liable to a penalty of £100 per 50 employees for each month or part month your P11D(b) is late. The P11D(b) is the form used to submit your individual P11Ds to HMRC. You’ll also be charged penalties and interest if you’re late paying HMRC the employers’ Class 1A NIC due 19 July 2016 (22 July if you pay electronically).

Listed below are some of the common errors / mistakes made by employers when submitting their forms P11D. If you complete forms incorrectly and then file them, they will be returned to you for correction and re-filing. This may mean that you fail to meet the filing deadline:

• Duplicated information submitted, for example where P11D information has already been filed online, the employer may submit the same information on paper to ensure ‘HMRC have received it’
• Using a paper form that relates to the wrong tax year
• Not ticking the ‘director’ box if the employee is a director
• Not including some form of description or abbreviation, where amounts are included in sections A, B, L, M or N of the form
• Leaving the ‘cash equivalent’ box empty where a figure has been entered in the corresponding ‘cost to you’ box
• Sending forms P11D when they have also ticked the box in Part 5 of form P35 (in the Employer Annual Return) to indicate that forms P11D are not due
• Where a benefit has been provided for mixed business and private use, some employers only enter the value of the private-use portion but full gross value of the benefit must be reported
• Not completing the fuel benefit where this applies
• Completing the ‘from’ and ‘to’ dates incorrectly in the ‘Dates car was available’ boxes by showing the whole tax year. For example, entering 06/04/2011 to 05/04/2012 to indicate the car was available throughout that year. But if the car had been available in the previous tax year, the ‘from’ box should not be completed and if the car is to be available in the next tax year, the ‘to’ box should not be completed

The following examples are a guide to, but not an exhaustive list, of circumstances, which might amount to a reasonable excuse for late filing:

• The employer is a sole trader, or director of a ‘one man’ company, and has suffered a sudden and serious illness between the end of the tax year and the filing date, or has been affected by a prolonged and serious illness throughout the period
• Unavoidable and unexpected absence close to the filing date because of business commitments or domestic emergencies
• Accidental destruction of the records through fire or flood
• Exceptional postal delays because of a strike by postal workers
• Although the employers form P11D(b) has not been received by HMRC, the employer claims nevertheless to have posted it in good time
  • Unless there is evidence to the contrary, such a claim should be accepted on the first occasion that it is made, provided that a further form P11D(b) is then submitted promptly. In any subsequent year the employer should be required to substantiate such a claim by evidence of posting of some kind
• Sudden disruption to a business or its records by a break in
• Installation of a new computer system or program for the payroll which has hit unexpected teething problems
• Although the employer’s form P11D(b) is a photocopy, it is a photocopy of an official P11D(b) form which bears a ‘wet signature’ (a signature in ink)

Please contact us if you have any problems completing the P11D forms or dealing with the filing requirements.

HMRC have a long running campaign to encourage property owners who receive rental income from property, and who have not declared this income on their tax return, to get their tax affairs in order. The following example, reproduced from HMRC’s website, shows how this can occur.

 Beena age 23

• Moved to Leeds to work in finance sector and purchased a 2 bedroomed flat to live in when she got there.

• She started a relationship and after 18 months moved in with her partner.

• Rather than sell her flat, which she saw as a good investment, she decided to rent it out. The rental income just covered the mortgage payments.

• She makes no SA returns and her only dealing with HMRC is through the payroll of the company that employs her.

• Beena’s total mortgage payments are circa £8000 per annum and the rent she receives is £8,400. She also has agent fees and maintenance costs to pay.

• Beena has not realised that only the interest payments on her mortgage are an allowable expense for tax purposes. The £3000 she paid last year to reduce the capital owed cannot be claimed. Therefore, she should have told HMRC about her rental income and paid tax on around £2,500 profit (allowing for other expenses related to maintenance, etc).

• If the profit was below £2,500 HMRC could collect the tax due on this through amending Beena’s PAYE code number without the need to complete a tax return.

If you own property that you let out and have not considered the tax consequences, please call to discuss your options. Making a voluntary disclosure to HMRC may save you money as HMRC will likely reduce any penalties payable.

The following notes set out the general scope of the Cycle to work scheme. This provides a number of tax advantages that employers can use to encourage employees to cycle to work.

Who can use the scheme?

Employers of all sizes across the public, private and voluntary sectors can implement a tax exempt loan scheme for their employees. To maximize the benefit of implementation, it is desirable that participation in a scheme should be as broad as possible. To qualify for the tax exemption, the cycles and cyclists' safety equipment loaned by the employer under the scheme must be available to employees generally with no groups of employees excluded. Further information on general availability can be found in the Employment Income Manual on the HM Revenue and Customs website at EIM21664, EIM21665 and EIM 21666: http://www.hmrc.gov.uk/manuals/eimanual/updates/eimupdate070510.htm 

The test of available to employees generally can have implications for employers with staff who are under 18 years of age or on or near the National Minimum Wage. 

What equipment is included under the tax exemption?

Eligible equipment includes cycles and cyclists' safety equipment. The tax exemption defines a "cycle" as 'a bicycle, a tricycle, or a cycle having four or more wheels, not being in any case a motor vehicle' (192(1) of the Road Traffic Act 1988 (c.52)). An electrically assisted pedal cycle can be included under the scheme. 

Cyclists' safety equipment is not similarly defined in the legislation and a common sense approach should be taken to the equipment provided. This could include: 

• Cycle helmets which conform to European standard EN 1078
• Bells and bulb horns
• Lights, including dynamo packs
• Mirrors and mudguards to ensure riders visibility is not impaired
• Cycle clips and dress guards
• Panniers, luggage carriers and straps to allow luggage to be safely carried
• Child safety seats
• Locks and chains to ensure cycle can be safely secured
• Pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs
• Reflective clothing along with white front reflectors and spoke reflectors 

It is the employer's choice what safety equipment is offered, but you may wish to confirm with your local tax inspector whether the equipment you provide falls within the tax exemption.

If you would like to set up a scheme for your employees, or lobby your employer, we can provide guidance. There are different rules for self-employed businesses.

The National Audit Office (NAO) has published a report criticising HM Revenue and Customs (HMRC) for periods of poor customer service last year.

Responding to the report, Ruth Owen, HMRC’s Director General for Customer Services said:

We recognise that early in 2015 we didn’t provide the standard of service that people are entitled to expect and we apologised at the time. We have since fully recovered and are now offering our best service levels in years.

Over the past six months we’ve consistently answered calls in an average of six minutes, and have launched new online tax accounts and webchat for everyone, enabling customers to manage their tax affairs wherever and whenever they want.

There’s never been a better or more convenient service for our customers.

HMRC achieved improvements to customer service by:

• recruiting more than 3,000 additional advisers who can work outside normal office hours when many customers choose to call HMRC
• introducing more flexible working to deal with large fluctuations in customer demand throughout the year, underpinned by a new telephone system that enables HMRC to move calls around the country in response to demand
• launching online services that enable customers to manage their tax affairs when and where they want, including by smartphone, with online support such as webchats. The new personal tax account already has more than 1.5 million users and the business tax account more than five million registered users

The proof of the pudding… Readers that have experienced bad service from HMRC should register their complaint. It remains to be seen that service has now “fully recovered”.

 1 June 2016 – Due date for Corporation Tax due for the year ended 31 August 2015.

 19 June 2016 – PAYE and NIC deductions due for month ended 5 June 2016. (If you pay your tax electronically the due date is 22 June 2016.)

 19 June 2016 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2016.

 19 June 2016 – CIS tax deducted for the month ended 5 June 2016 is payable by today.

 1 July 2016 – Due date for Corporation Tax due for the year ended 30 September 2015.

 6 July 2016 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

 19 July 2016 – Pay Class 1A NICs (by the 22 July 2016 if paid electronically.).

 19 July 2016 – PAYE and NIC deductions due for month ended 5 July 2016. (If you pay your tax electronically the due date is 22 July 2016.)

 19 July 2016 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2016.

 19 July 2016 – CIS tax deducted for the month ended 5 July 2016 is payable by today.