6 July 2021 is the deadline for filing your company’s P11Ds which show employees’ taxable benefits and expenses. What do you need to pay attention to this year?
The deadline for filing the 2020/21 P11Ds is 6 July 2021 and the deadline for payment of any Class 1A NI due is by 22 July 2021 (or 19 July 2021 if you pay by cheque). What do you need to note this year?
If you provided private medical insurance to staff and this has not been payrolled, be aware that the taxable value may have changed for 2020/21. Some insurers have made refunds to employers where they have failed to provide services that were originally specified. The amount shown on the P11D should be the amount paid in the year less any refund relating to that year, regardless of when it is received.
Ultra low emissions vehicles are those with approved CO 2 emissions of between 1 and 50g/km. Along with the year of registration, the benefit percentage is now based on the electric range of the car.
HMRC has announced that employer-provided antigen tests and work-related PPE for employees are not taxable benefits, so you do not need to report these on P11Ds . If you have given employees equipment to assist them when working from home due to the pandemic then this should also be tax exempt. Likewise, installing broadband in an employee’s home because they now need to work there is tax free and does not need to be shown on the P11Ds.
If a company car was not used privately during the tax year, e.g. due to lockdown restrictions, for 30 or more consecutive days, then the car benefit is reduced in proportion to the number of days it is not available. You will need to prove to HMRC that the employee had no way of driving the vehicle, e.g. because they handed their keys back.
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