Employers must submit and modify forms P11D and P11D (b) online, except for those digitally excluded. Forms P11D and P11D (b) on original or amended paper will be disregarded. Employers should submit the P11D “before 7 July” yearly under Regulation 85 of The Income Tax (Pay as You Earn) Regulations 2003. This corresponds to the widely recognised deadline of 6 July.
The term “or” is removed from the Social Security (Contributions) (Amendment No. 2) Regulations 2023. Assuming the employer is not digitally excluded, electronic P11D (b) submission is the only alternative starting on 6 April 2023.
Employers submit a P11D form and a P11D(b) form to detailing the value of any taxable costs or workplace benefits provided to employees during the year. Some perks are covered by payroll taxes, but employers must inform HMRC of any that are not. They must either complete a P11D form plus a P11D(b) form, depending on how they provided benefits to their employees.
From 6 April 2023, any paper P11D or P11D (b) forms provided by employers or agents would be rejected on the grounds that they were not correctly submitted to HMRC. The refusal will be communicated to the employer or agent, who will then be directed to the appropriate procedure. The regulations state that there won’t be any consequences for disregarding this new obligation to use an approved electronic communication medium.
Employers should sign up for updates regarding videos and webinars, as promised in April’s Employer Bulletin, primarily since webinars on “Submitting forms P11D and P11D(b) online” will be broadcasted live in May, June, and July 2023. The use of either commercial software or HMRC’s online service was then advised to employers. Revised P11Ds and P11D (b) s must also be submitted online.
Employers and agents submitting up to 500 forms P11D and P11D (b) can use the free HMRC PAYE online services. Third-party software is needed for applicants that have more than 500 forms. This development was unexpected. It was supplied into an item on payrolling benefits in kind in the February 2023 Employer Bulletin, with additional detail in March 2023 Agent Update number 106.
References
HM Revenue & Customs. 2023. ‘February 2023 Issue of the Employer Bulletin’, GOV.UK (GOV.UK): https://www.gov.uk/government/publications/employer-bulletin-february-2023/february-2023-issue-of-the-employer-bulletin#paye-1
‘P11Ds and P11D(B)S Must Be Submitted Only Online from 6 April 2023’. 2023. Icaew.com: https://www.icaew.com/insights/tax-news/2023/mar-2023/p11ds-and-p11dbs-must-be-submitted-only-online-from-6-april-2023
CIPP. 2023. ‘Reminder: No More Paper P11D Forms from 6 April 2023’, Cipp.org.uk: https://www.cipp.org.uk/resource-library-2/news/no-more-paper-p11d-forms-from-6-april-2023.html
