There may be a big change ahead for the end of year P11D form 14 April 2014 Administrator Main content (0) The time has come for the P11D form to be investigated to see if it’s doing the job its set out to do.As we all know the P11D forms have to be completed annually by an employer to cover all staff benefits and expenses that do not appear on the payroll. This applies to complex loan payments, entertainment, travel and subsistence costs. The purpose of the form is to help HMRC calculate any personal tax or employer national insurance, which has not been recorded through the normal payroll process.It’s one of the tricky area’s that can easily catch a company out if it’s not dealt with properly and leave them with a hefty fine. A Call For ChangeMore than 4 million P11D forms are filled every year making them a very time- consuming task for employers and HMRC. There is a strong opinion from businesses across the UK that it would be much better to add them to the monthly payroll process.In January, the Office of Tax Simplification (OTS) looked into this area of frustration and generated a report that collated their findings and recommendations. The report urges the Chancellor, to consider allowing businesses to be able to process their staff benefits through their payroll when appropriate.Colin Ben-Nathan, chairman of the CIOT’s Employment Taxes Sub-Committee, said: “This report contains many excellent recommendations which we believe should be given careful consideration by government with a view to action as soon as possible."The OTS believed the proposed changes could eliminate 99% of P11D forms that are currently submitted at the end of every year. Ben-Nathan goes on to say “We agree that making it easier for employers to process more benefits via the monthly payroll would substantially reduce the number of P11D forms that employers need to submit.Unfortunately what was identified in January just fell short of the Chancellor George Osbourne’s, budget speech date and at this time have not had chance to be addressed. There is Still Hope YetFrom these findings, HMRC will consider simplifying the P11D process by bringing all employees into P11D reporting rather than using the separate forms for the P9D (for those earning less than £8,500 per year). We can keep our fingers crossed! How We Can Help You Our expenses system takes away the headache of the P11D by automatically populating the information as the year-end looms. We also keep you up-to-date with the latest HMRC laws and regulations by applying it straight to our software, so our customers benefit from 100% compliancy and avoid incorrect submission and late fines. 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