P11D Services and Employer Compliance

This is a very emotive area for employers and employees alike. Employers want to reward staff in a tax and national insurance efficient manner. The provision of Benefits in Kind is often seen as a perk but there are tax and national insurance consequences to consider. Some benefits can be tax free for example mobile phones and interest free loans up to £5,000.

Do director shareholders pay themselves a bonus or a dividend? Is it beneficial for employees to provide their own cars and claim for business mileage from the employer? Are you unnecessarily increasing national insurance liabilities by having benefit contracts in the employee's name rather than the employer's? These are some of the important questions which need to be considered and we can help find the right package for you.

The completion of forms P11D to declare Benefits in Kind is a very complex matter and mistakes can easily be made by the inexperienced. The maximum penalty for an incorrect P11D is £3,000 and there are also potential penalties if the forms are not submitted to the Revenue or copies not given to staff by the deadline.

We have an experienced and fully trained team to help with the completion of P11Ds. We also advise and assist in obtaining Dispensation Agreements from the Revenue, thus minimising the need to declare certain benefits.

For further information please contact Elizabeth Robertson or Tony Harvey.