In a letter to the tax authority, the tax faculty welcomed the fact that a draft P11D form for 2022/23 had been issued earlier than last year, although some changes were still needed, it warned.

Making specific changes to the form would help to ensure that correct PAYE code numbers can be issued, meaning that employees pay the right amount of tax the first time.

A P11D is the form used to report expenses and benefits paid to directors and employees which have not been subject to PAYE tax. HMRC require that companies notify these expenses after 5 April each year.