Farewell Online P11D

 

HMRC’s April Agent Update directed advisers to a section in the February 2022 Employer Bulletin entitled Decommissioning of HMRC’s Online End of Year Expenses and Benefits Service April 2022. 

This advised that the interactive PDF service, commonly used by small and medium-sized employers, would not be available for use for 2021/22 submissions.

Employers who previously relied on the online End of Year Expenses and Benefits service need to consider their options now that the online form is not available for tax year 2021/22 and onwards. If the news has come as a surprise, it may be worth starting with a summary of what the service allowed:

• Interactive PDF capability enabling small to medium-sized employers (up to 150 employees) to create P11D forms for their employees
• The capability to create, send and amend P11D and P11D(b) forms electronically or for printing and posting
• The facility to create and submit a ‘Nil P11D(b)’, essentially saying to HMRC that there is no Class 1A National Insurance liability.

Payroll managers will know that tax year 2021/22 is not totally complete until employers have completed all of their P11D returns and made submissions to HMRC. This annual process includes the submission of form P11D(b) and payment of Class 1A National Insurance Contributions.

There are now only two ways for employers of any size to report and submit details of expenses and benefits for tax year ending 5 April 2022: via payroll software (depending on functionality) and HMRC’s PAYE Online service (for submissions up to 500 employees).

Good luck!

Tax does have to be taxing.

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