Shropshire employers are being warned that they may face a busy few weeks with important tax reporting deadlines approaching.
Francesca Hutcheson, Tax Director here at Dyke Yaxley Chartered Accountants, said it was vital for company bosses to ensure they met the deadlines to avoid unnecessary late filing penalties
“It’s a really busy point in the tax year for employers, and it’s important that companies are vigilant so that they don’t miss any of the crucial dates.”
Francesca said July 6 was a particularly pivotal date as it is the cut-off point for several tax requirements.
“If you have provided taxable benefits to your employees, such as company cars, medical insurance or other perks as part of their employment, they will need to be reported on a for P11D for each employee and submitted to HM Revenue and Customs by July 6.
“Alternatively, most benefits can be taxed through the payroll as long as an employer has registered with HMRC before April 5 which was the start of the tax year.”
Francesca said other minor or irregular expenses or benefits provided to employees could be dealt with through PAYE settlement agreements (PSA) – an annual payment to cover the tax and national insurance that is due.
“Benefits covered by this kind of arrangement could include incentive awards, telephone bills, small gifts and vouchers, and taxable staff entertainment.
“A PSA contract for items such as these needs to be agreed with HMRC by the all-important July 6 date, and the tax and national insurance contributions due need to be calculated and reported to the Revenue by July 31, and paid by October 19.”
She said when it came to gifts and awards of shares to employees – often known as employment related securities – all new arrangements would also need to be registered with HMRC by the July 6 deadline.
“And if you do grant Enterprise Management Incentive options to an eligible employee, perhaps to recruit, reward or retain key staff, you must report it within 92 days of the offer.
“There are a number of ways to structure your employee reward packages, through a mix of cash, shares and other non-cash benefits. But complying with reporting requirements about the benefits has become increasingly complicated, so it’s wise to take professional advice to avoid missing the crucial dates.”
Francesca Hutcheson, Tax Director