Benefits and expenses

Scheduled Dates (sort by: location | date)

Course Overview

There are still many employers who do not consider using dispensations or PSAs and thereby create additional work at the tax year-end. Additionally some employers are still not reporting expenses and benefits correctly on forms P11D and P9D and are not aware of the large fines and penalties for making errors. All these points will be covered during the day. With the maximum fine of ?3,000 for an incorrect or incomplete return can you afford not to send your payrollers on this seminar?

The seminar will provide delegates with a clear understanding of the tax and NI treatment of expenses and benefits and how the HM Revenue & Customs year-end reporting requirements work.

Exercises will ensure that delegates understand what needs to be reported and how to calculate cash equivalent figures for those expenses and benefits.

Audience

• Payroll managers, supervisors and administrators
• HR managers and administrators
• Accounts managers and assistants
• Accountants
• Finance managers and assistants
• Finance directors or controllers

Skills Gained

• Avoid missing filing dates and incurring fines
• Ensure advantage is taken of dispensations ESC and PAYE settlement agreements
• Understand class 1A and class B employer only NIC
• Identify potential problem areas
• Succeed in completing and filing forms on time

Above all, this programme will help you understand the P11D and P9D forms and how to complete them correctly.

Course Outline

Introduction

• Definition of 'expenses and benefits'
• What reporting is required using forms P11D and P9D
• How to deal with expenses payments and benefits received by employees from a third party
• Which employees are involved?
• Deciding which form for which employee
• How the HM Revenue & Customs use the forms
• Employee personal reporting under self-assessment

Employee travel and subsistence

• Permanent place of work
• Site-based workers
• Home-based workers
• Travelling employees
• The HM Revenue & Customs examination of claims

How to reduce P11D reporting by use of

• Tax free payments
• Dispensations
• Extra statutory concessions

PAYE Settlement Agreements (PSAs)

• Items that can be dealt with as PSAs
• Amending PSAs
• Calculation of tax payable on the PSA
• NIC treatment of PSAs - class 1B employer NIC
• Keeping of records by employers

Review of forms P11D

• Explanation of the cash equivalent of benefits
• Employer class 1A National Insurance on benefits in kind

and how to calculate

• Which benefits are excluded from Class 1A
• Commonly omitted items
• Filing dates and penalties
• Electronic filing

How to calculate the cash equivalent of benefits for P11D

• Company cars and fuel changes
• Low or interest-free loans
• Living accommodation
• Mileage payments for use of own car
• Company cars update
• Consideration of other benefits including relocation and vouchers

P9D completion

• Line by line review and explanation of the P9D form
• Section A (1) - expenses payments
• Section A (2) - any other payments or benefits
• Section B - vouchers and credit cards
• Section C - accommodation

Avoiding penalties

• Dates for filing forms P11D and P9D and the penalties for late filing
• Timetable for completion of forms P11D and P9D
• Submitting the forms to the Inland Revenue
• Electronic filing

Benefits and expenses / cm64192