P11D and P11D(b) Late Filing
Tax Question
What is the P11D deadline and what are the penalties if submitted late?
Tax Answer
Key changes to consider:
From 6 April 2023 – P11D and P11D(b) There is a requirement for employers to make an electronic return (Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682), reg. 85 (as amended by SI 2023/307). The link for HMRC’s online services is PAYE Online for employers: Using PAYE Online – GOV.UK and for agents acting on behalf of the employer How to use the PAYE for Agents online service – GOV.UK.
From April 2027 – Payrolling of Benefits (These were to be introduced from April 2026, but this has been pushed back one year) HMRC will make payrolling of benefits mandatory, replacing the traditional P11D submission process for most employers. This shift means that taxable benefits will be taxed in real-time through the PAYE tax deduction, rather than being reported at the end of the tax year.
Due dates of P11D and P11D(b)
| Deadline | Penalties | Legislation | |
| P11D(b) | 6th July | First 12 Months: £100 per month, per 50 employees (rounded up).
Over 12 months: Additional penalty of up to 100% of the Class 1A NICs remaining unpaid by 19 July following end of tax year. (SI 2001/1004, reg. 81). Example: return was submitted 15 August with 70 employees with benefits would attract a penalty of £400 (i.e. 2 × 50 employees × 2 months). Penalties may be avoided if it can be established that the taxpayer had a reasonable excuse (CH160200).
|
Income Tax (PAYE) Regulations 2003 (SI 2003/2682), reg. 81. |
| Deadline | Penalties | Legislation | |
| NIC | The deadline for payment of Class 1A NICs is 19 July, or 22 July, if paid electronically, unless you have ceased trading. | There is a further 5% penalty for not paying the NIC owed by 22 August (i.e. 30 days after the due date). This penalty rises to 10% after 6 months, and 15% after 12. HMRC will always charge interest on late payment of any tax. | FA 2009 Sch 56 Para 3 |
Incorrect P11D and P11D(b) returns
Incorrect P11D/P11D(b) can cost the employer substantial penalties. The penalties are behaviour assessed as follows (FA 2007, Sch. 24, Pt. 2):
| Behaviour of the employer | Voluntary disclosure | prompted’ disclosure |
| Careless | 0% to 30% | 15% to 30% |
| Deliberate but not concealed | 20% to 70% | 35% to 70% |
| Deliberate and concealed | 30% to 100% | 50% to 100% |
HMRC manual CH82470 & CH81100 provides useful information.
Tax Advisor
Kabita Tank
For more information, please contact us at: consultancy@vantagefeeprotect.com
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