2022/23 P11Ds - all you need to know
Now that you’ve got the first month of the new tax year out of the way, it’s a good time to turn your thoughts to the completion of P11Ds on non-payrolled taxable employee benefits. What do you need to be aware of this year?
P11Ds recap
P11Ds are forms which employers must submit to HMRC each tax year to report the value of reportable benefits they have provided to employees and directors, where the benefits are not covered by a formal payrolling arrangement with HMRC or are not dealt with under a PAYE Settlement Agreement. The deadline for submitting P11Ds is 6 July following the tax year and a copy of each employee’s FormP11D , or the information it contains, must be given to the employee by the same date.
You need to file the 2022/23 P11Ds by 6 July 2023 and the payment deadline for the Class 1A NI due on the benefits is 22 July 2023. You’ll be fined £100 per month (or part month) your form is late for every 50 employees.
Once you’ve submitted the P11Ds , look out for revised tax codes from HMRC for your employees who have been provided with any benefits to account for any unpaid tax on the benefits from the previous tax year.
Online only
One of the big changes for 2022/23 is that you must submit the P11Ds online instead of using paper Forms P11D and P11D(b). HMRC says that if it receives any paper forms, it will reject them.
As an employer you have two options for submitting your P11Ds online: (1) HMRC-approved commercial software; or (2) HMRC’s PAYE Online Service. The latter is free whereas you’ll probably have to pay for commercial software, although 12 Cloud Payroll offers free P11D software if you’ve less than ten employees.
Before looking at new software, check whether your payroll software provider offers complimentary P11D filing software as this will avoid the hassle of inputting your employer and employee payroll details into new software.
Blended Class 1A NI rate
Don't forget the 1.25% increase in NI at the start of the 2022/23 tax year followed by its repeal from 6 November 2023. This means that when you calculate the Class 1A on Form P11D(b) you will need to use a blended Class 1A NI rate of 14.53% rather than the 13.8% rate in force at the end of 2022/23.
You’ll need to pay Class 1A NI on payrolled benefits as well as those reported on Forms P11D.
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