Employer reporting requirements for 2014/15

As the new tax year dawns, it is important to remember the upcoming deadlines for employer returns to HMRC in the coming months, such as:

  • Return of benefits and expenses.
  • Return of share option schemes – approved and unapproved.

All forms must be submitted to HMRC by 6 July 2015 to avoid penalties and submitted electronically in the case of the share option schemes.

 

Return of benefits and expenses – Form P11D

Form P11D is necessary to report any benefits and expenses that your business has provided to employees. This could include company cars or vans, private medical insurance, loans, telephone expenses, memberships, travel expenses and so on. It would be too onerous to list all of the benefits to be declared but generally if you are providing benefits or reimbursing expenses to staff, it is likely that any payments will need to be recorded on forms P11D. The taxable value of such benefits will be taxed on the employees or directors either via PAYE or Self Assessment. The employer (and in some instances the employee or director) will be required to pay national insurance on such benefits. Form P11D(b) is the return of the Class 1A national insurance payable by the employer.

Return of share option schemes

There are a variety of share option scheme returns depending upon the nature of the share option scheme. The company may be required to report transactions such as:

  • The issue of any shares by the company to employees or directors.
  • The grant of any share options by the company to employees or directors.
  • The exercise of any share options.
  • The cancellation of any share options.

It may be that the company has no formal ‘scheme’ but it is important to remember that the transfer of shares from say a shareholding director to an employee as a reward for services should also be reported. 

 

Should you require advice, our tax experts are only a phone call away.