Important 6 July reminders for your employment taxes
For many employers 6 July is the deadline for submitting their Forms P11D. However, there are a number of other forms or reports which need to be submitted to HM Revenue & Customs (“HMRC”). This update is an opportunity to ensure you have not unintentionally overlooked anything:
- PAYE Settlement Agreements (“PSA”). If any variations to your PSA are required for the 2014/15 tax year then these should be agreed with HMRC. Similarly, if you have identified any benefits or taxable expenses where they are minor, or it is impractical for the employee to incur the liability, for example staff entertaining, then a PSA will need to be put in place by 6 July.
- Termination Payments. If you made any termination payments which exceeded the £30,000 limit and have not been subject to both tax and National Insurance via the payroll, then details of those payments need to be reported to HMRC.
- Third Party Benefits. Where you have provided benefits to employees of any third party, for example, as part of an incentive award arrangement, then details of those benefits should be provided to their employer.
- Employment Related Securities. If you have issued any equity awards to your employees, then these will need to be reported to HMRC on the appropriate form, for example, any awards made under an Employer Management Incentive arrangement should be reported within a Form EMI 40.
This year the return must be submitted electronically via the ERS portal as opposed to submitting a paper copy of the form.
From 6 April 2016 we will be seeing a number of new developments within the Employment Taxes arena. The main change which will impact all employers is that P11D dispensation agreements are being replaced by the Business expense allowance, a form of "self-assessment" where the employer determines whether any expenditure is taxable or not. Consequently it will only be necessary to declare those items which are liable to tax and Class 1A National Insurance.
For many employers there will be a seamless transition. However, there will be a greater level of dependency upon you ensuring your procedures can withstand closer scrutiny from HMRC. Employers may wish to review their existing arrangements to ensure they are compliant with both existing as well as the new rules.
Should you have any questions please contact Nick Bustin, Director of Employment Tax, or your usual haysmacintyre contact.
Director of Employment Tax
T: +44 20 7969 5578