No more paper P11D forms from 6 April 2023

Effective for the 2022/23 tax year, HMRC will not accept paper submissions of P11Ds and P11D(b)s for reporting benefits and expenses. Instead, these must be submitted electronically using HMRC's PAYE online service or commercial payroll software. The PAYE online service is suitable for up to 500 P11D and P11D(b) returns.

From 6 April 2023 onwards, any paper forms submitted to HMRC will be rejected. Furthermore, paper amendments will no longer be accepted. Instead, HMRC has introduced the G-form amendments solution, which replaces the print/post versions previously used to report changes on P11D and P11D(b) returns. There is no specific timeline for submitting an amendment, and HMRC acknowledges that circumstances may arise where only a small number of amendments need to be made. To facilitate this, URL links to the amendment G-forms are now available on the P11D/P11D(b) GOV.UK pages.

Payrolling benefits

By choosing to payroll benefits, employers have the option to eliminate the need for submitting P11Ds to both HMRC and employees. This approach involves increasing an employee's taxable pay by the value of the benefit, resulting in the payment of relevant PAYE through the payroll system in real time.

As at 6 April 2023 new informal payrolling arrangements will no longer be accepted. Informal agreements already in place will still be accepted, but a formal agreement should be arranged as soon as possible.

Source: GOV.UK