If you have a PAYE scheme you must complete form P11D(b) and notify HM Revenue & Customs whether or not any benefits have been provided to your employees in addition to their normal wages.  The definition of employee includes all directors.

The forms must be submitted to HM Revenue & Customs by the 6th July in order to avoid penalties.  If benefits have been provided, Class 1a National Insurance will be charged at 12.8% on the benefit value and this must be paid to HM Revenue & Customs by 19th July using the payslip that they will send to you separately.

Although the list is by no means exhaustive the most common areas where problems arise are as follows:

• Cars – owned or leased by the company

• Vans

• Mobile Phones

• Directors accounts/Loans

• Business assets used by an employee

• Subscriptions

• Private bills settled by the business

If you make payments to charity or Community Amateur Sports Clubs under the Gift Aid scheme, remember to keep records of how much you pay and when as this information will be needed if you complete a tax return or make a repayment claim. 

If you make regular Gift Aid payments, for example by standing order, you might want to keep a watchful eye on them, particularly if your circumstances change.  If you are a non-taxpayer or only pay at the rate of 10% on savings, you could find that if you were due a tax repayment via your personal tax return this could be reduced if you have made Gift Aid payments.  This can be a particular concern for pensioners. 

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