P11D – Act Now

It is time to prepare the Forms P11D and P11D(b) for the 2007/08 tax year. The forms are the employer’s responsibility. They are required for directors or employees who are provided with benefits or for whom you pay or reimburse expenses.

The Forms P11D and P11D(b) have to be submitted to HM Revenue and Customs by 6 July 2008. Payment of any Class 1A National Insurance contributions must be made by 19 July 2008. Directors / Employees must be provided with a copy of their P11D by 6 July 2008.

We have attached in a pdf file link below a schedule of the typical benefits in kind provided to employees and directors for information. The checklist also details the applicability of either Class 1 NIC or Class 1a NIC to the benefit provided. Any Class 1 NIC liability arising on a benefit should be accounted for on the payroll system and returned on the End of Year forms P14.

We also draw your attention to some important information regarding certain benefits in kind and expenses:

• For 2007/08, the benefit scale charge for company vans available for private use, excluding commuting has increased to £3,000 with a fuel benefit charge of £500. If the benefit charges are not to be incurred, then detailed mileage logs have to be maintained in order to demonstrate that the vehicles were only used for business mileage.

• With regard to company cars and fuel available for private use, the appropriate benefit scale charge percentage is increasing in 2008-09. The Fuel benefit charge is also increasing from £14,400 to £16,900 in 2008-09.

• The advisory fuel rate for company cars was amended at 1 January 2008. For the future it is to be reviewed twice a year and any changes will take effect on 1 January and 1 July.

• The official rate of interest applicable to beneficial loans has been increased to 6.25% for 2007-08 and 2008-09.

• Details of any Expenses paid, including the use of company credit cards, or reimbursed to directors or employees should be included on forms P11D, unless a Dispensation has be issued by HM Revenue and Customs. If you have paid or reimbursed any expenses in 2007-08 these will need to be returned on forms P11D and a Dispensation application made for the future.

If you require any further information regarding the completion of forms P11D, or whether certain benefits in kind are still cost effective, please contact your local Tax Department asking for Debbie Monk in Maldon on 01621 852191, Kim Payne in Braintree on 01376 326266 or Brenda Okoli in Chelmsford on 01245 216800.

 Expenses or Benefits Checklist

Date:31 March 2008