What is the P11D filing deadline?

The final date for filing P11Ds for your employees is 6 July every year. The employer’s P11D(b) and Employment Related Securities (ERS) returns are also due on 6 July every year. Based on the current information, a P11D will be required for 2023/24, 2024/25 and 2025/26 after which benefits will need to be payrolled.

So, what happens if you miss the deadline?

P11D(b) and P11D late filing penalties

Your P11D(b) sets out the amount of Employer’s Class 1A NIC payable on the employee benefits in kind you provided. If you fail to submit your P11D(b) on time, HMRC will send you a penalty notice. HMRC will charge an automatic penalty of £100 for each 50 employees (and any excess – eg £300 for 105 employees) for each month (or part of a month) that your P11D(b) return is late after the deadline. There is a further 5% penalty for not paying the NIC owed by 22 August (ie 30 days after the due date). This penalty rises to 10% after 6 months, and 15% after 12 months and, of course,

HMRC will always charge interest on late payment of any tax. HMRC can also request that a penalty of £300 per P11D submitted late is charged, but this has to be done through the First-tier Tax Tribunal (FTT). If the FTT agrees to issue such penalties, a further £60 per day can be charged until the employer puts things right.

ERS returns late filing penalties

In the case of late-filed ERS returns, unless there is a reasonable excuse for the late submission, an initial penalty of £100 will be charged, followed by:

• A further penalty of £300 if the return is filed three months after the due date
• A further penalty of £300 if the return is filed six months after the due date
• HMRC also has the discretion to charge a daily penalty of £10 if the return is filed nine months after the due date, or later.

For certain tax-advantaged share plans, the late submission of the annual return may also result in the loss of tax relief.

What if you made a mistake?

Submitting a P11D or P11D(b) that contains incorrect figures can be expensive, even if it was filed before the 6 July deadline. Exactly how expensive depends on the nature of the error and what you do to put it right.

When HMRC learns that a form you have submitted is incorrect, it will charge a penalty calculated as a percentage of the tax lost as a result. For example, any penalty charge on a low value error will be minimal – but it is always sensible to put things right if you notice a mistake.

Penalties for errors are charged on a sliding scale based on the taxpayer’s behaviour, and take into account who spotted the mistake: if HMRC ‘prompts’ you to correct a mistake, the penalty charged will always be higher than if you voluntarily tell HMRC about the mistake and put it right:

Behaviour of the employee	Penalty range for voluntary disclosure	Penalty range for ‘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%

 

Unsurprisingly, there have been many disputes about what constitutes ‘careless’ and ‘deliberate’ behaviour when penalties arise, but one thing is certain - trying to conceal a mistake is never a good idea: it can result in you paying twice the amount of tax that was due in the first place.

In the case of ERS returns which contain a careless or deliberate inaccuracy, a penalty of up to £5,000 can be charged.

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