What if the P11D is wrong?

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Calculating the value of benefits to be reported on P11Ds is not a simple exercise and mistakes do come up. This guidance note will help you if an error is discovered.

The action to be taken when an error is discovered depends on whether the error is found before or after submission to HMRC.

An incorrect entry may be seen by HMRC as an indicator for ‘employer education’ which may take the form of a compliance visit (see PAYE57335). However in practice, P11D corrections are commonplace, especially for large employers. Often large amounts of data must be processed in a short time frame to meet P11D deadlines, with the inevitable risk of human or data error. In most cases, any mistake identified should therefore simply be corrected as quickly as possible and on a ‘matter of fact’ basis.

For more, see Simon’s Taxes E8.819.

Errors discovered prior to submission

Ideally, errors should be corrected before submission to HMRC so that no issues other than the internal work of correcting them will be necessary. If

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