What if the P11D is wrong?

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Calculating the value of benefits to be reported on P11Ds is not a simple exercise and mistakes do come up. This guidance note will help you if an error is discovered.

The action to be taken when an error is discovered depends on whether the error is found before or after submission to HMRC.

An incorrect entry may be seen by HMRC as an indicator for ‘employer education’ which may take the form of a compliance visit (see PAYE57335). However in practice, P11D corrections are commonplace, especially for large employers. Often large amounts of data must be processed in a short time frame to meet P11D deadlines, with the inevitable risk of human or data error. In most cases, any mistake identified should therefore simply be corrected as quickly as possible and on a ‘matter of fact’ basis.

For more, see Simon’s Taxes E8.819.

Errors discovered prior to submission

Ideally, errors should be corrected before submission to HMRC so that no issues other than the internal work of correcting them will be necessary. If

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Tax Returns

Owner-Managed Businesses

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more

Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more

��Ƶ