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Education update: HMRC return of taxable benefits

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17 April 2013

If you provide your teachers with benefits above their base salary such as private medical insurance, company car, private telephone costs, travel and subsistence costs etc then the tax equivalent of these benefits must be declared to HMRC on forms P11D.

In addition, the academy may have a National Insurance charge on the benefits. The deadline for the submission of forms P11D is 6 July after the end of the tax year. So, for example, for this tax year STBT on 5 April 2013 forms P11D need to be submitted to HMRC by 6 July 2013 and any National Insurance charge paid to HMRC by 19 July 2013. Copies of forms P11D need to be provided tov each appropriate staff member by 6 July 2013 for their records.

To avoid the onerous task of having to report payment of all travel and subsistence, entertaining and professional subscription expenses to HMRC, it is possible to obtain a dispensation agreement with HMRC. This means
that the reporting requirement for such expenses is withdraw. The academy would, however, still need to complete the forms for staff who receive pure benefits such as company car, medical insurance etc.

If the Local Authority are still handling your payroll affairs, we would imagine that they would have all this taken care of, but it is worth asking the question. It is also pertinent to mention that this is a service that we offer, should you decide to change service provider from the Local Authority.

In terms of the tax paid by the staff on the benefits, this will be collected via adjustment to future PAYE Codes unless the staff are required to complete Self Assessment Tax Returns, for some other reason.