By now your employers end of year return form P35 should be complete and out of the way and it is therefore time to think about form P11D(b), the employers declaration of any benefits in kind provided to their employees.

If you provide a company car to an employee, if you pay for medical insurance or any other personal bills for any of your employees, or if your business has loaned money to an employee in excess of £5,000, you must declare this on form P11D(b) and submit it to HM Revenue and Customs by the 6th July 2008 in order to avoid penalties being charged.

Class 1a National Insurance is due on any benefits calculated and this must be paid to HM Revenue and Customs by 19th July 2008.  Specific payslips to enable you to do this are currently being issued by HM Revenue and Customs however if not received by the payment deadline you should still send off your payment to ensure interest charges are not imposed.

Please remember that even if you did not supply any benefits for your employees, if you have an active PAYE scheme and you did not tick the box on the P35 to say no P11D(b) was due, you must still submit a nil return to meet the necessary compliance requirements.

For further information please contact Janice@a4gsolutions.co.uk or alternatively speak to your client manager.

Following the piece last week about monthly CIS returns, we have been asked to explain the importance of the verification process.

If you are a contractor in the Construction Industry Scheme (CIS), you must ring HM Revenue & Customs on 0845 366 7899 to “verify” each new subcontractor that you take on. They will take from you the subcontractors name, address and tax reference. 

You will then be advised what level of tax must be deducted and they will provide you with a verification reference which must be entered onto the monthly returns.

If this is not done correctly, then you will be unable to complete your monthly returns on time and you will be fined at least £100 for each late return.

If you need any assistance with monthly returns or other CIS queries, please contact janice@a4gsolutions.co.uk or alternatively speak to your client manager.

“As a leader you must understand the needs in individuals and how they operate, so that you can work with the grain of human nature and not against it."

JOHN ADAIR