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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

Personal Tax

Inter-spouse transfer

Inter-spouse transferIntroductionWhen a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil

14 Jul 2020 12:01 | Produced by Tolley Read more

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more

��˾��ҹ��