Welcome to this month’s update.

There is a statutory requirement to submit forms P9D and P11D by 6 July 2010 but there are no automatic penalties for late submission of these returns.

Interest and penalties will be charged if there is a Class 1A National Insurance Contributions liability on any taxable expense payments or benefits that are included on any late submitted P11Ds. If the returns of Class 1A NICs and Employer Declaration are received by HMRC by the 19 July 2010 Class 1A payment deadline penalties will not be automatically charged.

Providing payment of Class 1A NICs due is made by the 19 July 2010 (or 22 July for an acceptable method of electronic payment) no interest will be charged. If your client has cash flow problems and cannot pay on time then contact HMRC’s Business Support Service (0845 302 1435) and get an agreement for payment of the arrears.

If your client submitted the P11Ds and P11D (b) online last year HMRC will not have issued a paper P11D (b) this year and the employer should have received an online notification of the requirement to complete a P11D (b) return. If you are not submitting online this year and it isn’t compulsory, you can download a P11D (b) from the HMRC website to complete and submit.

‘Nil’ P11Ds are not required by HMRC but if the box on the form P35, Employer’s Annual PAYE Return was noted that P11Ds are to follow, you should contact HMRC to confirm that no P11Ds are due. If you do nothing HMRC may issue a penalty notice.

It is too late to get a P11D dispensation for 2010/11 but having just gone through the process this is a good time to apply for a dispensation for the current tax year.

Application can be made online or by post to the Employer Support Team at HMRC, Bowback House, 299 Silbury Boulevard, Witan Gate West, Milton Keynes, Buckinghamshire, MK9 1NG.

HMRC has announced a change for next year to the P46 (car) procedure reversing its decision not to accept replacement company car notifications. There are no plans to change the paper form P46 (car), but HMRC will accept electronic notifications of replacement cars from April 2011.