Businesses which have registered with HMRC before the start of the tax year can pay taxes on benefits and expenses through the payroll.
A P11D form must be submitted to HMRC at the end of the tax year for each employee who has received expenses or benefits - unless this is being dealt with entirely through the payroll.
Additionally, a P11D(b) form may be required if:
a P11D form has already been submitted
the employees' expenses or benefits have been paid through payroll
HMRC have requested this.
P11D(b) forms deal with any Class 1A National Insurance which is required in relation to expenses and benefits. If no Class 1A National Insurance is owed (eg HMRC has asked you to provide form P11D(b)), a declaration needs to be completed stating that you do not owe Class 1A National insurance.
A penalty of £100 per 50 employees will be charged for each month of part month that a P11D(b) form is late. Penalties and interest will also be charged on late payments to HMRC.