Contractors, don't make these P11D mistakes
Therefore, as contractor companies prepare their 2014/15 P11Ds for submission for no later than July 6th 2015, here are the most common mistakes we see and would warn against:
- Not reporting all expenses, irrespective of whether tax relief is available, where no P11D dispensation is held
- In group structures, the P11D dispensation has not been extended to cover all PAYE schemes
- Expenses not reported for certain groups of employees e.g. directors, not included in the dispensation.
General P11D completion
- Not advising HMRC that no P11Ds are due through the final EPS return for the tax year
- Submitting duplicate P11D information on paper where P11D information has already been filed online
- Using a paper form that relates to the wrong tax year (– check the top right hand corner of the first page)
- Not ticking the ‘director’ box if the employee is a director.
- Not including a description in the appropriate box where amounts are included in sections A, B, L, M or N of the form
- All P11D entries should be VAT inclusive, irrespective of whether the VAT can be recovered.
- Not including the cost of utility and related bills paid for accommodation even where the accommodation itself is exempt
- Expenses for employees who work at home not reported where in excess of £4 per week
- Home to work and other private mileage (e.g. call outs and excess fares) not reported
- Reimbursement of an employee’s personal mobile phone bill not reported (exemption only applies to employer-provided phones).
- Where company credit cards are used, expenses reported at both Sections C and N.
- Incorrect apportionment of private medical insurance where premiums renewed during the tax year
- Overdrawn directors’ loan accounts not reported as a beneficial loan
- Omitting entry at Section B where PAYE on share option gains not recovered within 90 days
- Incorrect CO2 and/or fuel type for company car
- Incorrect List Price values used for company cars (e.g. wrong model, ignoring accessories).
- Showing 5/4/15 in “To” box when company car continues to be provided into next year.
Know your deadline
Remember, the deadline for submitting your 2014/15 Forms P11D and P11D(b) is July 6th 2015.
But if you have a Class 1A NIC liability as shown on the P11D(b) for 2014/15, the payment deadlines are as follows:
- 19th July 2015 – for postal payments
- 22nd July 2015 – for electronic payments