Clay Shaw Butler
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.
There’s some important deadline news for you this week about benefits and expenses provided to employees and directors.
The forms P11D, which report details of benefits and some expenses provided to employees and directors for the year ended 5 April 2018, are due for submission to HMRC by 6 July 2018.
The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.
Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system.
Significant changes were introduced to the rules for reporting expenses from 6 April 2016.
Some employers ‘payroll’ benefits and in this case the benefits do not need to be reported on forms P11D, but employers should advise employees of the amount of benefits payrolled.
In addition, regardless of whether the benefits are being reported via P11D or payrolled the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits.
The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July (or 22nd for cleared electronic payment).
HMRC produce an expenses and benefits toolkit. The toolkit consists of a checklist which may be used by advisers or employers to check they are completing the forms correctly.
If you would like any help with the completion of the forms or the calculation of the associated Class 1A NIC please get in touch with Clay Shaw Butler.
Internet link: HMRC guidance Toolkit –
In other news, the Enterprise Management Incentive (EMI) allows selected employees (often key to the employer) to be given the opportunity to acquire a significant number of shares in their employer through the issue of options.
An EMI can offer significant tax advantages as the share option scheme allows options to be granted to employees which may allow the shares to be received without any tax bill arising until the shares are sold.
HMRC have warned that EMI share options granted in the period from 7 April 2018 until EU State Aid approval is received may not be eligible for the tax advantages presently afforded to option holders, and accordingly share options granted in that period as EMI share options may necessarily fall to be treated as non-tax advantaged employment-related securities options meaning that the options may be taxable when exercised.
To read more, please visit the link below or contact Clay Shaw Butler for specific advice.
Internet link: GOV.UK EMI Bulletin –
Finally, HMRC have issued details of the updated VAT fuel scale charges which apply from the beginning of the next prescribed VAT accounting period starting on or after 1 May 2018.
VAT registered businesses use the fuel scale charges to account for VAT on private use of road fuel purchased by the business.
Please do get in touch with the team at Clay Shaw Butler for further advice on this or other VAT matters.
Internet link: GOV.UK fuel scale charges –
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) –
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The team at Clay Shaw Butler can be contacted on 01267 228500.
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