P11D Issues: Tips for Handling Digital Submissions, Electric Cars, and Director's Loans
Digital Submission for P11Ds: Starting this year, all P11Ds must be submitted digitally.
Dealing with Different Agents: Submitting P11Ds digitally can be challenging if different firms handle various tasks under the same tax head. To address this, the main agent can add the company as an "unauthorized" client in their online service, allowing them to file P11Ds for that client.
Electric Cars: When completing the P11D for electric vehicles (EVs), remember to enter a zero emissions figure. Failure to do so may result in the HMRC assuming the car has the highest CO2 emissions rating. Additionally, consider the tax implications of charging company-owned EVs versus private vehicles.
Director's Loan: If the director's loan exceeds £10,000 at any point during the year, it should be declared on the P11D form. To avoid a taxable benefit, directors must pay interest on the loan at the official rate (2% for 2022/23) for the entire tax year. Note the deadlines for paying interest and the potential section 455 charge if the loan remains outstanding.
Making Good: Remember that the deadline for submitting P11D data to HMRC is Thursday, 6 July 2023. Directors and employees should also make arrangements to cover the costs of benefits provided in 2022/23 to avoid being taxed on them.
Stay updated with the latest P11D guidance and seek professional advice from Albatross Accounting to ensure compliance and minimize any potential issues.
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