The relevant documents need to be submitted online within the next four weeks with a final deadline of 6 July 2015 – these include the 2014-15 employers' end of year forms and 2015-16 record keeping.

HMRC has issued a reminder that its toolkit is aimed at helping and supporting tax agents and advisers in completing employer's end of year forms (P9D, P11D and P11D(b)) on behalf of their clients, although it may also be of use to employers or anyone who is completing these forms.

The risks in theHMRC toolkit have been reviewed and updated where necessary for 2014-15 and should be used for expenses and benefits in kind for employer end of year forms 2014-15 and for record keeping 2015-16.

The benefits code applies to most directors and employees, unless the employment is an 'excluded employment'.

An excluded employment is one where:

• an employee is in lower paid employment, earning at a rate less than £8,500 including expenses and benefits (except those covered by dispensations); or
• a director who is in lower paid employment and has no material interest in the company and is either a full-time working director or the company is non-profit making or is established for charitable purposes only.

There are two separate schemes that reduce the administration for expenses and benefits:

An employer can apply for a dispensation notice from HMRC which can save time in completing end of year forms P9D and P11D.

This notice removes the requirement to report agreed expenses and benefits in instances where a director or employee would be able to obtain a tax deduction.

Dispensations are often given for travelling and subsistence expenses for business journeys. Further information is available in Booklet 480 - chapter 2 (page 10).

The main dispensations are:

 PAYE Settlement Agreements

A PAYE Settlement Agreement (PSA) is a flexible scheme that can be used to settle any PAYE (Pay As You Earn) tax and National Insurance contributions (NICs) due to HMRC on three types of expense and benefit:

• minor items;
• irregular items; and
• items where it is impractical to operate PAYE or to value the items for P9D or P11D purposes.

HMRC highlights cars and vans as particular risk areas and stresses that the term company car and van relates to any business vehicle provided by a sole trader, partnership or company to a director or employee.

Errors can arise when vehicles available for private use are not identified and where private fuel provided is not reported on the relevant forms.

Further details are available here http://www.cchinformation.com/CCH/Gateway.dll/newspd/cln/cln-tax/cln-income-tax/cln-income-tax-news/03-06-15-expenses.pdf