HMRC pulls the plug on paper P11Ds

HMRC has stopped accepting paper P11Ds

For some years now we have been referencing HMRC’s Employer Bulletins in respect of comments made about the future of employers submitting paper P11D forms and lists. HMRC has previously referred to these forms as ‘legacy’ documents and has said that the preference would be to report benefits online, or to deal with them via benefit ‘payrolling’.

In the Employer Bulletin for February 2023, HMRC has now finally confirmed that

“For the 2022 to 2023 reporting year we will no longer accept paper P11D and P11D(b) forms, this includes lists.”

This leaves employers with two options, either:

  • Account for the tax due through RTI and the ‘Payrolling of Benefits’, which is PSTAX’s preferred solution as it deals with the tax due on the benefit immediately. This means that for large benefits like company cars, there is no playing catch-up with the tax; or
  • Continue to submit P11D forms, albeit online, through either commercial payroll/P11D software or HMRC’s PAYE Online service.

HMRC has also confirmed that sending in amended P11D forms or lists will also be unacceptable in paper format. A new online submission link will be launched, allowing employers to submit amendments directly.

To begin payrolling, you must formally register online before the start of the new tax year. Informal payrolling arrangements will not be accepted beyond 2022/23.

This will mean, however, that if you are not already payrolling, your only option for P11D submissions for 2022/23 will be to submit them in accordance with the second option above.

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Our comprehensive approach encompasses various domains, providing a customized selection of services tailored to meet the specific needs of our clients. Our offerings include a thorough assessment of P11D reporting, policy documentation, Benefit Payrolling, and PSAs. In cases where inaccuracies are identified, we collaborate with our clients to rectify all errors and ensure accurate disclosure of any underpayments to HMRC.

Angela Ferguson

Written by Angela Ferguson

Angela has spent close to 30 years within taxation, having trained within the big 4 for most of her career. She spent 10 years at EY as a Director in their Manchester office managing the Employment Tax and NMW teams. Prior to joining PSTAX Angela was the Head of Employment Taxes at Saffery Champness for 3 years, growing and developing the team and service line for the firm.

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