The completion of Forms P11D and Form P11D(b) by 6 July each year can represent a significant administrative burden on many businesses and the financial penalties for getting matters wrong are high.

The reporting of all relevant expenses in a compliant manner together with the need to include any expenses not covered by the Form P11D Dispensation notice can represent a high area of risk to any business. Penalties for the incorrect completion of Forms P11D are £3,000 per P11D per year and penalties for non-submission of Forms P11D due are up to £300 per P11D per year. Whilst these penalties are not always imposed, they are used as a significant threat to ensure any unpaid tax liabilities are settled by employers on a "grossed up" basis – representing up to 80% or more in tax and NIC settlements of the amount of benefit or expense not reported.

Importantly, much of HMRC's risk assessment is also drawn from the P11Ds submitted and as such inaccuracies can lead to Aspect Reviews or full PAYE, Expense and Benefit audits.

Our team of former HMRC personnel are able to mitigate these risks for your business by completing Forms P11D which meet HMRC requirements. Our reviews often result in savings to your business either by identifying areas of reporting which are not necessary, or restructuring arrangements to avoid a benefit in kind charge arising.

Our solutions include full outsourcing of P11D completion through to a proactive, compliance review of proposed P11D returns before they are submitted to HMRC.

For further information please contact the Cobia team on 0845 226 0580 or email info@cobia-uk.com