P11D returns and other important July tax-related deadlines
July is a busy month as far as tax deadlines are concerned, businesses are required to notify HMRC of a range of transactions and activities. With most falling on 6 July, these include:
- 6 July – P11D returns are due
- 6 July – The final day to agree PAYE settlement agreements for the previous tax year
- 6 July – All companies are obliged to notify HMRC of a wide range of share and securities transactions.
- 22 July – Any class 1a National Insurance owed on expenses or benefits must reach HMRC (19th July if paid by cheque)
It is also worth noting that the second payment on account for personal tax returns would normally be due by 31 July. However, this has been postponed until 31 January 2020 as part of the Government’s Covid-19 relief package.
Where this applies, you should be mindful that on 31 January 2021, the balancing payment will also be due as well as the first payment on account for the following 2020/21 tax year. This could effectively mean you are paying the equivalent of a full year tax bill in one payment or face penalties for late payment. Budgeting will be key over the forthcoming six months.
All employers who provide taxable benefits to their directors & employees need to submit an end-of-year report of those benefits to HMRC.
The employer is required to prepare a form P11D for each employee in receipt of a taxable benefit and a form P11D(b) to declare the Class 1A NIC due on the total of all benefits supplied to all employees. The deadline to submit these forms to HMRC is 6 July, following the end of the tax year.
If businesses have not yet prepared these, they should act now as failure to file on time can result in late submission penalties.
Any class 1A National Insurance owed on expenses or benefits, calculated from the filing of a P11D must reach HMRC by 22nd July (19th July if paid by cheque).
Further information on P11D can be found here.
Share and securities transactions
All companies are obliged to notify HMRC of a wide range of share and securities transactions by 6 July 2020.
This includes debentures, loan stock and shares held by an employer (or a person connected to them).
Anyone that has not taken the required steps to adhere to this deadline should do so now. This will help ensure that late penalties are not incurred.
Common events that you should notify HMRC of include:
- Assignment or release of (taxable) securities options
- A change in the rights of shares held by employees
- Rights issues or bonuses issued to employees
- Sales of shares and securities that are ‘restricted’
- The issue or transfer of shares and securities
- The grant or exercise of a share option or other rights to acquire shares
If an EMI option arrangement has been in place during this period, the equivalent notification must be made online.
Further information on notifying HMRC on share and security transactions can be found here.
Contact us for assistance
Please do not hesitate to contact us if you have any queries or require assistance with any of the above.
For clients, we can advise you and guide you through the processes involved. If you prefer, we can remove these burdens from you and undertake the work on your behalf.