TAX FORMS AND CHARGE INCURRED

Tax forms and charge incurred

Tax forms and charge incurred

Form P11D

FORM P11D is a UK form that is a tax form that signifies expenses and benefits. It is filled by employers for their directors and other employees who earn an amount more than 8500 pounds annually. It is sent to the PAYE office scheme where it is registered. It is used for reporting benefits that are provided and the expenses payment that have been given to the employees by the employers but were not documented in the payroll.

As of present, this form has fourteen sections:

A Assets Transferred

B Payments made on behalf of the employee

C Credit Cards and vouchers

D Living Accommodation

E Mileage Allowances

F Cars and car fuel

G Company Vans

H Beneficial Loans

I Medical Health

J Qualifying Relocation Payments

K Services Supplied

L Assets placed at employee's disposal

M Other Items

N Expenses Payments

Around 5 million P11Ds are sent to HMRC each year (www.hmrc.gov.uk).

Form P9D

This form has been designed for reporting the benefits and expenses that have been provided to employees who are paid low. It is for the employees who earn less than 8500 pounds. These are the benefits that are reported on this form.

Expenses of P9D that exceed £8,000

Living Accommodation

Payment of Pecuniary Liability

Vouchers: this may include any voucher that would be exchanged for either goods or services or cash

Cash Convertible. (www.hmrc.gov.uk).

After the tax year has ended, every individual needs to complete and file their aim expense and benefit forms. They need to choose from either the P11D form or P9D form for every employee to whom expenses have been provided along with the benefits during that tax year. All these forms are submitted to the HM revenue and Customs, also known as HMRC. They need to be submitted by the 6th of July each year.

The simple difference between the two ...