P11D filing to end
HMRC is scrapping the use of Form P11D to report benefits in kind from 2026. How will you need to account for tax and NI due after this?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
Currently, over 4m P11D returns are filed each year. The forms are used to report taxable benefits in kind, e.g. company cars, and set out the taxable amount for the employee and the Class 1A liability for the employer. It is possible to account for benefits via the payroll system, but in some cases a Form P11D is still required to pay the Class 1A liability. HMRC has announced that from 6 April 2026, it will be mandatory to payroll all benefits in kind, with both tax and Class 1A paid via the payroll system.
There is no further detail at present, e.g. we don’t know whether Class 1A will be payable monthly during the tax year or in one payment by 6 July after the tax year end (as is the case now). Draft legislation will be published later this year.
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