Thousands Of UK Companies Face Penalties Over Late Tax 'Perks' Forms

by Robert Lee, Tax-News.com, London

28 August 2002

There are fears that thousands of UK businesses may be racking up large penalties after missing the July 6 deadline for submitting forms covering benefits in kind.

According to a Telegraph report published on Monday, observers have suggested that up to one million companies failed to submit the P11D tax 'perks' form in time, leaving them exposed to fines of around £300 for missing the deadline, and £60 per day in late charges.

The Inland Revenue has revealed that it received 4 million of the forms before last month's deadline. However, despite the fact that more than 5 million were received last year, the tax authority is unwilling to speculate as to the number of companies now facing penalties, explaining that new dispensations, and changes to the rules covering company car taxation may have meant that fewer companies needed to file the benefits in kind forms.

However, the Telegraph article suggests that another reason behind the delay in filing may be the increasing complexity of the taxable benefits issue, pointing out that: 'long service awards, insurance payments covering work-related liabilities, social events and even taking a laptop computer home for personal use' could all qualify for tax treatment.

Speaking to the newspaper this week, Anne Selway, executive with HR and payroll specialists, Carapeople explained that: 'Some companies are fully aware of their liabilities but others are less experienced. They have little idea of the extent of the benefits they have to declare.'

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