Withdrawal of non-digital P11D submission tool

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HMRC has confirmed that it has decommissioned the non-digital end of year expenses and benefits service for small businesses, withdrawing the interactive PDF form.

Businesses who have previously used the interactive PDF, known as HMRC’s online end of year expenses and benefits service, to submit P11D and P11D(b) will no longer be able to use this service to submit returns for the 2021 to 2022 tax year.

HMRC are steering employers to use HMRC’s “PAYE online service” for this year’s returns. This service will allow submissions of a company’s expense and benefits data for up to 500 employees and can be accessed using the company’s existing government gateway details.

Unlike the online end of year expenses and benefits service, businesses will not have to download the latest version of Adobe Reader or use a certain web browser to access it.

The PAYE online service can also be used to submit P46(Car) claims.

HMRC said: ‘The PAYE online service should be straightforward to use. However, if you do encounter any problems, please use the help function on the PAYE online service or contact the online services helpdesk.’

In our experience, the PAYE online tool is fairly simple to use providing you know exactly what to report and where to report it. Small organisations with straightforward employee remuneration arrangements should find the system “does what is needed”.   Larger companies or those with more complex pay and finance arrangements which require a level of data manipulation are likely to struggle however and should considered looking for a bespoke payroll software/provider (of which there are many) in the commercial market.

Businesses can use the PAYE online service to:

  • check what you owe HMRC;
  • pay your bill;
  • see your payment history;
  • access tax codes and notices about your employees;
  • appeal a penalty;
  • get alerts from HMRC when you report or pay late, or do not send the expected number of reports in a month; and
  • send expenses and benefits returns such as P46 (car), P11D and P11D(b).

We expect there to be further decommissioning of “manual” forms and ways for companies to submit information to HMRC as the drive towards fully digital tax services in the UK shows no signs of slowing down over the next few years.