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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HMRC clarifies treatment of averaging relief under MTD IT
HMRC has updated its guidance to explain how averaging relief claims will operate under Making Tax Digital for Income Tax (MTD IT). The clarification addresses concerns about how farmers and creators will claim relief once quarterly reporting becomes mandatory. What has changed?
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Double up on the employment allowance
You’re the sole shareholder of a limited company which employs several members of staff. You’re working on plans to start another business with an ex-colleague. Can both businesses benefit from the full employment allowance (EA)?
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VAT cut for children's holiday activities over summer
The government has announced a temporary reduction in the rate of VAT applying to certain children's holiday activity programmes during the summer holidays. The measure is intended to help families with childcare costs during the school break. What has changed?
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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