How to file your 2021/22 expenses and benefits returns

Employers, who last tax year provided their employees with taxable expenses and benefits, need to file their returns to HMRC by the 6th of July 2022. Exceptions apply if they have been payrolled or included within a PAYE Settlement Agreement.

The expenses and benefits of each employee need to be reported via the P11D form. A P11D(b) is also needed as this is the employer’s declaration that all required P11Ds have been filed as well as the Class 1A National Insurance return. Please note that P11D(b) forms must be filed even if all benefits have been payrolled as payrolled benefits are considered when working out the Class 1A National Insurance liability.

Filing your returns

Employers have an option to file their P11Ds and P11D(b) returns electronically or in paper format. Electronic filing is the most preferred option for both, employers and HMRC. However, the electronic filing options are reduced this year. HMRC has decommissioned their Online End of Year Expenses and Benefits Service and consequently, it can’t be used to file 2021/22 returns. Employers can use HMRC’s PAYE Online Service, or file using a commercial software package.

Filing returns via PAYE Online

The PAYE Online service can be used to undertake several things; accessing tax codes and notices about employees, checking what they owe HMRC, paying bills, checking their payment history, and appealing a penalty. In addition, this system can also be used to file expenses and benefits returns but only for up to 500 employees. Employers who need to make more than 500 submissions will need to use a commercial software package.

In order to use the PAYE Online service to file expenses and benefits returns, employers must be registered and logged on via their Government Gateway account. The service should be rather easy to use yet, if you face any issues, you can use the help function or contact HMRC’s Online Services Helpdesk, via the web chat or by phone on 0300 200 3600.

Commercial software packages

Employers can also file their expenses and benefits online using a software package. If employers have more than 500 submissions, then they must use commercial software. If you need any assistance your software provider will be able to help.

Paper format

Another way to file your P11Ds and the P11D(b) forms is offline. However, this is likely to be a preferred option for employers with few submissions.

If you have nothing to file this year

Employers with no returns to file this still need to file a P11D(b) form and to make a nil declaration online on the Gov.uk website. It is very important as a penalty may occur. If you need some guidance on how to file your nil declaration, please read our guidelines here.