P11D & tax year end tasks

The P11D is a form which is used to report the expenses paid to directors and “higher paid” employees (those who earn over £8,500 p.a.) at the end of the tax year to HMRC.

To complete the form requires significant re-analysis of the expenses as the amounts to be included are the VAT inclusive amounts, not the VAT exclusive amounts in the accounting system.  This was time consuming and was the first time I felt the frustration that many express about unnecessary “red tape”.

I first completed the P11D paper form which I have retained for my own personal reference.  Looking through the HMRC web site I saw that there is an online filing option and completed the P11D online, then the P11D(b) which was completed for me.

In addition, I went back into the Basic PAYE Tools programme to complete the P60 Form, printed it off and gave it to myself.

I had already made my year end payroll tax submission and printed the P35 form, so having double checked that all the necessary forms had been completed, I updated the Basic PAYE Tools to the 2013/14 RTI version following the process laid out on the HMRC web site.

I also completed the P11D dispensation application online which hopefully will mean that I can avoid completing the P11D form next year.