Blue box or brown box?

Key points * Changes to the 2006-07 forms P9D and P11D. * Obtaining information and guidance. * Reporting requirements and exclusions. * Calculating the benefits and NIC charges.

THE ANNUAL P11D expenses and benefits returns reporting exercise is an onerous but important task. The P11D return entries have a knock-on effect on the employer who has to pay the Class 1A National Insurance Contributions (NICs) liability that goes with the 'brown box' entries on the P11D (and there might be a Class 1 NICs liability on some of the 'blue box' entries). The figures reported will have an impact on the take home pay of the employees and directors too the amounts reported being converted into an adjustment in their PAYE tax code. So prompt liability payment and code adjustments are good reasons why we must ensure that these statutory P11D return forms are submitted accurately and...