hmrc p11d form

A Basic Guide About Penalties for Late Forms P11D!

16/08/2022Tax Issues

When you are in the process of declaration about your national insurance contribution, benefits, and business expenses, it is advisable to ensure that you have completed the HMRC p11d form as well. This form has an explanation of the details about the benefits, facilities and expenses payments that are received either by the director of a company or the employees. There should be a separate form for each individual regardless of whether he is a director or an employee. Although there is no such requirement for filling this form if an individual has paid taxes using the payroll system.

The same goes for the individuals who are having no taxable benefits, such expenses will be returned to the relevant individuals. There is a date specified for the submission every year which is needed to be followed. In this guide, we will help you to develop an understanding of what are late submission penalties, what happens for the first 12 months of late submission or if it goes over 12 months. You will realise why is it important to keep them away from your business because the way HMRC imposes late submission penalties is not quite favourable for you.


Reach out to one of our professionals to get to know what is the best way to submit an HMRC p11d form for your business. We will love to offer instant help!


HMRC P11d Form – Penalties for the Late Submission

According to section 98(1)(b) Tax Management Act 1970, the amount of the initial penalty for one form is £300 in the case you fail to submit the forms on time. The suggested time by the HMRC is 6th July. It is to be considered after the tax year has ended. An amount of £60 is further added for each late day unless your clearance is processed.

Moreover, it is required HMRC to make an application before the process of charging penalties and get in touch with the First Tier Tribunal. This will ensure the penalty is imposed by HMRC.  The late submission of form p11d becomes a reason for paying the heavy amount of penalties charged to your business.

In the case, you have submitted the form p11d(b) late, there is no chance that this form will get to the HMRC after the tax year deadline. This brings high chances of penalties. Two kinds of penalties will be charged in this scenario. However, if you have an authentic excuse for the late submission of this file, you can appeal and keep yourself away from penalties and heavy amount of fines.


Late Penalties for First 12 Months

According to social security regulation 81(2)(a), the initial year of lateness is charged with a fixed penalty charge. The penalty amount will be charged in such a way that it will consider the amount of each relevant month when you fail to file the submission. Moreover, there are a few important points to consider here that are listed below for you:

  • The amount of penalty should not be more than class 1A contribution.
  • The penalty should not cross over the amount of class 1A NIC.
  • There can not be any penalties issued if there is no liability of class 1A NIC.
  • In the case, HMRC is expecting to receive the p11d form and the submission is late, there will be an automatic issuance of the penalty.
  • Every late day will be considered in this process unless HMRC receives the form.
  • During the compliance check of HMRC, if a late submission is identified,  the penalty will be charged in this case.
  • It is settled in the contract with HMRC that the amount of penalty cannot be reduced by any chance, it is fixed in legislation.


Late Penalties for More than 12 Months

In this case, the lateness of submission has a go over of 12 months, according to Regulation 81(2)(b) Social Security further penalties will be charged. This depends on the Class 1A NIC payable. If there are no such liabilities associated with the individual, there will not be any issuance of the penalties.


Appeal Penalties – The Reasonable Excuses

As we know now that there are two kinds of penalties that HMRC can issue in case of late submission of the p11d form. The first is for the delay of 12 months and the other is when the delay is beyond 12 months. If you have an authentic excuse for the delayed submission, you can appeal for each type of penalty issued to you. The whole time of the delayed submission should be cord by the excuse you share with HMRC.

There are no absolute terms that can define a reasonable excuse. This can vary from one excuse to another. You can describe the following circumstances generally:

  • Providing the evidence of failure to submission was a reasonable delay with authentic excuses.
  • There was no delay once the obstacle was no more in the way to submission.
  • The reason or excuse is beyond the control of the individual.
  • It was not possible to make the failure of submission unavoidable.


The Bottom Line

Now that you have gathered a fair amount of information about the HMRC p11d form, we can bring the discussion towards wrapping up. We have developed an understanding of penalties of late submission in the case of p11d forms is quite a harsh process unless you come up with a reasonable excuse that ensures HMRC that the delay was unavoidable in your circumstances.

However, a reasonable excuse requires some solid and evident information to solve your case of penalties. Otherwise, there is no possible scenario to avoid the issuance of late penalties by HMRC. We hope these few minutes of reading this blog have helped to handle your form submission more promptly.


Get in touch with our young, clever and tech-driven professionals if you want to choose the best way to submit the HMRC p11d form. 


Disclaimer: The information about the HMRC p11d form provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

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