Give us your details and we’ll be in touch asap

Insights

All Articles

Business Services

Business Tax

Personal tax

Probate and Inheritance Tax

VAT

Business Services  •  Business Tax  •  Compliance  •  HMRC  •  Personal tax  •  Share Schemes  •  Small Business  •  Tax Planning  •  Taxation

Two key deadlines that could soon catch up with you!

By RJP LLP on 24 April 2017

The 2016/17 tax year has ended and there are some important tax reporting deadlines for that year that are fast approaching on 6th July.

  • Employee benefit returns – P11D Forms

A P11D is required from all employers detailing the cash equivalents of benefits and expenses that they have provided during the tax year to directors and employees. Unless a special dispensation is in place whereby expenses are acknowledged by HMRC to be purely the reimbursement of business expenses, the form must be submitted. This is a reporting requirement which applies whether or not the expenses are ultimately taxable; if they are not taxable, the individual will need to make a claim on their own self-assessment. Forms P11D for 2016/17 must be submitted to HMRC by 6th July 2017, with penalties being imposed for late submission.

The types of expenses that need to be included on a form P11D are:

  • Company cars, mileage allowances, fuel, company vans or motorcycles provided for private use, private car mileage allowances which exceed the tax-free limit, and fuel;
  • Payments for use of home telephones, mobile phone costs, company owned assets used by an employee including living accommodation;
  • Health insurance, health club memberships, subscriptions and professional fees, childcare support;
  • Expenses payments made by the individual and reimbursed by the employer, loans made at preferential rates of interest or other business expenses, e.g. late night transport from events.

P11D rules and regulations can be complex. If you need help compiling your P11D returns, please let us know.

 

  • Annual returns for employee share schemes

If you operate either a tax advantaged employee share option scheme such as EMI (enterprise management incentive), or another share scheme such as SAYE or CSOP, your company needs to submit the relevant annual return – Form 42 or EMI Return, before 6th July 2017. These returns cover the tax year from 2016/2017 and should detail all new and existing share subscriptions or options granted to employees and directors of the company.

In addition, if shares have been transferred to employees without the use of a share option scheme, the transfer of those shares must be reported on form 42.

Typically, a Form 42 / EMI return will need to include the following information:

  • Acquisition of shares or other securities by employees or directors (for example shares and loan notes acquired on a transaction, or as part of an incentive arrangement), including shares acquired under Employee Shareholder Status;
  • Grant of share options to employees or directors e.g. through an EMI scheme;
  • Disposals of shares and securities where income tax is due.

Although these deadlines may seem a little while away, it can take some time to compile all the information required to complete these returns. If a share plan has not yet been registered, this can further delay matters.

If you would like some support completing either the P11D form, Form 42 or an EMI return for your company, please contact us at partners@rjp.co.uk.

Read more articles like this

Is it time to review your payroll operations?

Beware of ‘tax efficient investments’ involving offshore trusts

Managing the reduction to AIA (Annual Investment Allowance)

Mitigating the worst impacts of an inflationary environment

More help coming but not quite yet…Chancellor’s Spring Statement 2022

Share this:

All Articles

Business Services

Business Tax

Personal tax

Probate and Inheritance Tax

VAT

Image

60 Day Deadline for CGT Returns and Tax Payments

If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.

tax planning ideas

The 2016/17 tax year has ended and there are some important tax reporting deadlines for that year that are fast approaching on 6th July.

  • Employee benefit returns – P11D Forms

A P11D is required from all employers detailing the cash equivalents of benefits and expenses that they have provided during the tax year to directors and employees. Unless a special dispensation is in place whereby expenses are acknowledged by HMRC to be purely the reimbursement of business expenses, the form must be submitted. This is a reporting requirement which applies whether or not the expenses are ultimately taxable; if they are not taxable, the individual will need to make a claim on their own self-assessment. Forms P11D for 2016/17 must be submitted to HMRC by 6th July 2017, with penalties being imposed for late submission.

The types of expenses that need to be included on a form P11D are:

  • Company cars, mileage allowances, fuel, company vans or motorcycles provided for private use, private car mileage allowances which exceed the tax-free limit, and fuel;
  • Payments for use of home telephones, mobile phone costs, company owned assets used by an employee including living accommodation;
  • Health insurance, health club memberships, subscriptions and professional fees, childcare support;
  • Expenses payments made by the individual and reimbursed by the employer, loans made at preferential rates of interest or other business expenses, e.g. late night transport from events.

P11D rules and regulations can be complex. If you need help compiling your P11D returns, please let us know.

 

  • Annual returns for employee share schemes

If you operate either a tax advantaged employee share option scheme such as EMI (enterprise management incentive), or another share scheme such as SAYE or CSOP, your company needs to submit the relevant annual return – Form 42 or EMI Return, before 6th July 2017. These returns cover the tax year from 2016/2017 and should detail all new and existing share subscriptions or options granted to employees and directors of the company.

In addition, if shares have been transferred to employees without the use of a share option scheme, the transfer of those shares must be reported on form 42.

Typically, a Form 42 / EMI return will need to include the following information:

  • Acquisition of shares or other securities by employees or directors (for example shares and loan notes acquired on a transaction, or as part of an incentive arrangement), including shares acquired under Employee Shareholder Status;
  • Grant of share options to employees or directors e.g. through an EMI scheme;
  • Disposals of shares and securities where income tax is due.

Although these deadlines may seem a little while away, it can take some time to compile all the information required to complete these returns. If a share plan has not yet been registered, this can further delay matters.

If you would like some support completing either the P11D form, Form 42 or an EMI return for your company, please contact us at partners@rjp.co.uk.