Now that we have reached the end of the 2022/23 tax year, limited companies who provide benefits in kind to any directors or employees, or even to members of the director’s or employee’s family or household, have a legal requirement to report this to HM Revenue & Customs (‘HMRC’) on form P11D before 6 July 2023.
Examples of benefits in kind can include use of company cars or vans, private medical insurance, interest free loans greater than £10,000, gym memberships, reimbursement of personal costs and company assets placed at a director’s or employee’s disposal for personal use.
Don’t worry – there are no requirements to report expenses that have been reimbursed by the employer if they were incurred solely (wholly ,exclusively and necessarily) for business purposes, for example travel, subsistence and entertaining.
If you believe that your company has provided benefits in kind to directors or employees during the 2022/23 tax year, or if you would like more information about employee benefits, please do not hesitate to contact us, we are here to help.
As you might expect, failure to notify taxable benefits and late filing of form P11D will give rise to penalty charges.
Don’t forget the ‘trivial benefit’ rules which allow you to gift your employees, for a non-work reason, cash or vouchers that cost up to a value £50 per day without any of the above benefit in kind tax implications.