Form P11D and Form 42 Deadline

The deadline for submitting forms P11D (and providing a copy to employees) and also form P11D(b) for 2016/17 is 6 July 2017.  Failure to submit the forms by this date will potentially lead to a penalty.

Previously, HM Revenue & Customs (HMRC) would know whether to expect a P11D(b) from the year end PAYE forms under RTI, however reference to the P11D(b) was removed from the RTI submission last year. A reminder will be sent through the post to employers where HMRC expect a P11D(b) to be filed. If the completed form is not filed then a late filing penalty will be issued.

Automatic Penalties
Any penalty for the late submission of form P11D(b) is charged with reference to the number of P11D’s due for the year – £100 per every 50 employees (or part of 50) per month or part month until the form is submitted.

In addition to late filing penalties, it is more important to be aware that penalties for completing an incorrect form P11D can be up to £3,000 per form, so it is essential they are right!

Online Form 42 – Employment Related Securities and Share Scheme Returns
The 6 July 2017 deadline also applies to the submission of annual returns for employment related share scheme members and notifying HMRC of certain share acquisitions for the year to 5 April 2017.

The online forms must be completed in respect of almost ALL SHARE ACQUISITIONS IN ANY CIRCUMSTANCES by a director or employee. Failure to submit a form and failure to do so can lead to an initial penalty of £100, rising to £400 after 3 months, £700 after 6 months and daily penalties after 9 months. It is therefore important that the forms are completed for each tax year but they can easily be overlooked.

If you need assistance in completion of these forms or additional information please contact the Blue Sky team.