P11D submission time is imminently upon us. But what about the obligation for leaver employees? Let’s look at the two obligations
Employer obligation to HMRC
The main legislative reference is Regulation 85 of the Income Tax PAYE Regulations 2003, which says the employer is to return the P11D (or P9D) and P11D (b) to HMRC ‘before 7 July following the end of the tax year. In effect, this means they must be with HMRC on or before 6 July. This applies to all P11Ds / P9Ds for the preceding tax year, together with the P11D (b). It is regardless of whether the employee is still employed or left part-way through the tax year.
As per my previous blog, while 6 July is the deadline, HMRC will not actually commence their late filing penalty regime if all returns are with them by the 19th.
The same is not true about the filing obligation to employees.
Employer obligation to employees
The same 2003 legislation, but Regulation 94, says that a completed P11D / P9D must only be given to the employee if they were employed on the last day of the tax year, ie 5 April. This must be given to the employee on or before 6 July. The annual question, therefore, is what happens to leaver employees.
Regulation 94 has the answer:
• An employee employed on 5 April who has subsequently left is still entitled to a P11D / P9D by 6 July. This legislative obligation is met if the form is sent or delivered to the employee’s last known address
With regard to leavers that were not employed on 5 April, it is still Regulation 94:
• There is no legal obligation for the employer to send the P11D / P9D to the employee that was not employed on the last day of the tax year.
• However, the employee is entitled to make a written request within three years of the end of the tax year. If requested, the employer must provide this within 30 days (or within 30 days of the 6 July following the tax year in question, if this is later).
Of course, there is nothing to say that an employer cannot follow the same reporting obligation as they have to HMRC and send P11Ds / P9Ds to all employees, regardless of whether they were employed on the last day of the tax year. All I am saying is that there is no legislative obligation.
While we are talking, shall I mention requests for duplicates? Regulation 94 (again) specifically says a former employee cannot request a further P9D / P11D. It makes no reference to requests for duplicates from current employees. As I have said so many times before, a little note with the original P11D / P9D saying that there will be an administration charge for duplicates does do wonders for the employee’s ability to find the original!