HMRC’s End of Year Expenses and Benefits Services submission changes may involve changes for your clients.
HMRC has advised that from 6th April the interactive PDF service will no longer be available to submit returns for the 2021/22 tax year and onwards.
The P11D form is used to report benefits in kinds. These are items or services your clients or your client’s employees receive in addition to salaries. For example, business entertainment expenses or company cars.
Where this happens, the P11D form must be filed with the HMRC following the tax year in question every 6th July, along with any tax due to be paid to the HMRC by the 22nd July.
With these changes, if your clients have relied on the End of Year Expenses and Benefits Services for submissions of up to 150 employees, they’re no longer able to:
- Create P11D forms for their employees
- Create, send, and amend P11D forms electronically or for printing and posting
- Notify the HMRC that there’s no Class 1A National Insurance liability
KeyPay UK country lead Chris Deeson says that if employers with up to 150 employees that have been using the End of Year Expenses and Benefits Services have two options:
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By GlobalData- Use the HMRC’s PAYE Online Service, allowing submissions for up to 500 employees and P46(car) submissions; or
- Use an HMRC recognised payroll software that allows P11D functionality
HMRC PAYE Online Service sounds cheaper in the short term, but payroll bureaus should look at an all-in-one package that may streamline the process and could reduce costs in the long run.
Deeson writes: “On average, bureau payroll managers use 6 systems before they start processing the pay run across expenses, leave, time and attendance, rota management, document management, etc. Not only does this generate extra work on behalf of the payroll processor to match up the data, but it also adds significant costs such as paying for each system and employing someone to maintain those systems.”
Businesses could consider using technology to automate processes and integrate their existing cloud accounting software to increase efficiencies, free up time, and reduce costs.