The demands on employers never stops
Over the last few weeks, we employers have had to cope with RTI, the biggest change in the PAYE system since its introduction and had to ensure our PAYE year end returns were submitted on time. All of this is with the threat of penalties hanging over us if we got it wrong. Now, just when we thought is was safe to go back to running our businesses, the 2012/13 P11D submission deadline comes along to bite us.
Most employers will be vaguely aware of “benefits in kind” but probably only give it a brief thought when ticking the ‘none’ box of the P35 year end return. However, it is something that we should not treat lightly. It’s not just cars and health insurance that need to be disclosed. There are many other employee perks that need to be considered.
For an employee who earns more than £8,500 per year and all directors the employer will need to report to HM Revenue & Customs things such as staff entertaining of £150 per employee, use of company assets, certain loans to employees, personal expenses and some child care costs paid by the employer.
The one benefit in kind that we are probably all aware of is the company car. When provided by the employer, whether with or without fuel, the business will need to report this even if it is mainly used for business purposes. The rate is dependant on a number of factors, not least the CO2 emission and list price of the car.
The one benefit that is a little harder for an employer to ascertain and one most likely to be looked at by HMRC is the employee’s use of a van. If there is any significant private use of the van, other than ‘home to work’ journeys then this will need to be reported as a benefit in kind.
If employers are in any doubt as to whether they need to make a return to HMRC they should take professional advice as the deadline for making the return is 6th July 2013. And yes……there are penalties if you get it wrong.