Fines for businesses that have not returned P11D(b) forms

Date: 16th July 2008

Small business owners yet to return their P11D(b) forms could now face fines from HM Revenue & Customs (HMRC).

HMRC revealed that it had started issuing penalty notices on July 14th where its records indicated that employers had not yet returned their P11D(b) forms for the financial year running in 2006 and 2007.

It explained that the fines follow similar penalties issued in November 2007 and March 2008. The latest fine will be £100 per 50 employees for each month that the return is outstanding between March 7th and July 6th.

A statement from HMRC added: "If you receive a penalty notice that you believe has been issued in error, you can appeal by writing within 30 days to the office named on the notice.

"Your letter should state your reasons for thinking that the penalty is incorrect."

According to HMRC, the P11D(b) form is used at the end of each tax year for businesses to report "the total value of the expenses and benefits attracting Class 1A National Insurance contributions (NICs) that [they] provided to [their] employees" and the amount of Class 1A NICs liability.