In our regular Q&A series, Croner Taxwise adviser Vanessa Matthews, explains the penalty regime relating to the late submission of P11D forms for employee expenses and benefits
Q. What penalties will I be charged if I am late submitting forms P11D and P11D(b)?
A. If forms P11D Expenses and Benefits are not received by HMRC by 6 July after the end of the tax year, penalties for late forms P11D can be charged.
Section 98(1)(b) Taxes Management Act 1970 provides for penalties for late forms P11D.
Section 98(1)(i) provides for a maximum initial penalty of £300 per form, for failure to submit forms P11D. HMRC needs to make an application to the First Tier Tribunal who can decide whether to impose these penalties.
Section 98(1)(ii) provides for continuing penalties of a maximum of £60 per day thereafter, until the failure has been remedied. These penalties can only be considered after an initial penalty has been imposed by the tribunal.
