It’s time to complete forms P11D, to report expenses (which were not included in your dispensation agreement with the Tax Office) and benefits paid to your employees in 2011/12. The P11D details can be submitted online using the free HMRC software or using your own payroll software. Alternatively you can complete individual paper forms, or submit a schedule to the Tax Office containing details for all your employees. Whichever method you chose, the deadline is the same: 6 July 2012.

Be careful not to submit the same P11D details by two methods: say online and in paper form, as this will only confuse the HMRC computer!

Some other common mistakes made when completing forms P11D include:

• Not ticking the ‘director’ box when required
• Missing employee ID details such as date of birth, gender, and full name
• Including expenses which have been covered by a dispensation
• Incorrect calculation of benefits provided for part of the year, such as cars, vans and fuel. You should use number of days available/366 for 2011/12.
• Restricting the list price value of a company car to £80,000. This cap has been abolished from 6 April 2011
• Omitting the cost of accessories fitted to cars after delivery
• Using the incorrect rate of interest for beneficial loans – it was 4% for the whole of 2011/12.

 

If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.