If you are a business owner and offer your employees benefits in kind, you will be familiar with forms P11D. These are required to declare all benefits provided and to allow HMRC to calculate any additional tax due. Small and medium sized businesses will typically submit this information to HMRC using the Online End of Year Expenses and Benefits Service, an interactive PDF service operated by HMRC. However, the Online End of Year Expenses and Benefits Service is no longer available for 2021/22 submissions. This article explains what the service was, together with the changes, with details of what this means for SME payroll operators. Now may be a very good time to overhaul your business payroll processes for the future.
Understanding the Online End of Year Expenses and Benefits Service
Employers used to have three ways to submit their forms P11D electronically. They could either use appropriate payroll software, the HMRC PAYE Online service (for submissions of up to 500 employees) or use the Online End of Year Expenses and Benefits service (for submissions of up to 150 employees).
The Online End of Year Expenses and Benefits Service was very convenient, because it allowed SME payroll operators to easily create electronic P11D forms for employees.
