As the UK tax year-end cycle draws to a close, employers should confirm that all required reporting and settlements have been completed. With key deadlines imminent, noncompliance can lead to penalties, interest and increased HMRC scrutiny.
This article summarises the key obligations and upcoming deadlines for Short-Term Business Visitors (STBV), PAYE Settlement Agreements (PSA), Forms P11D and Employment-Related Securities (Share) Reporting.
Deadline: 31 May following the tax year-end.
Key considerations: Employers should review all business visitors, confirm the purpose of the visit and assess eligibility for visitors to be included in the STBV reporting. Particular attention should be directed at foreign branch employees and nonresident directors.
Risks of missing deadline: HMRC may revoke the STBV agreement, impose stricter PAYE obligations for business visitors and potential penalties for late compliance.
Deadlines:
- 5 July: Deadline to agree on new PSAs with HMRC
- 22 October: Deadline for payment of tax and National Insurance Contributions (NIC)
Key considerations: Review the benefits provided and confirm that only qualifying benefits are included, as some benefits may be exempt. PSAs are often more cost-effective than grossing up through the payroll so a cost comparison of each benefit should be undertaken. Note that separate computations may be needed for England and Northern Ireland, Scotland and Wales.
Risks of missing deadline: Without a PSA in place, benefits must be taxed directly on the employees.
Deadlines:
- 6 July: Submission of P11D and P11D(b)
- 22 July: Pay Class 1A NIC
Key considerations: Benefits reporting can be complex. Certain trivial benefits are exempt, and the GBP 150 exemption for annual staff events requires careful application. Traditional reporting of benefits in kind is being phased out, with payrolling of most benefits mandatory for 2026/27.
Risks of missing deadline: Late submissions will result in penalties.
Deadline: 6 July
Key considerations: Returns must be filed for all open ‘plans,’ including nil returns where no ERS activity has taken place in the tax year. Internationally mobile employees should also be considered as reporting obligations may still apply.
Risks of missing deadline: Penalties are imposed for late or inaccurate returns.
With multiple deadlines approaching, employers should carry out a final compliance review, reconcile relevant data and ensure all filings and payments are completed on time. Prompt compliance not only mitigates the risk of penalties but also demonstrates strong governance practices.
Stuart Strong
BDO in the UK
This article summarises the key obligations and upcoming deadlines for Short-Term Business Visitors (STBV), PAYE Settlement Agreements (PSA), Forms P11D and Employment-Related Securities (Share) Reporting.
Short-Term Business Visitors
Deadline: 31 May following the tax year-end.Key considerations: Employers should review all business visitors, confirm the purpose of the visit and assess eligibility for visitors to be included in the STBV reporting. Particular attention should be directed at foreign branch employees and nonresident directors.
Risks of missing deadline: HMRC may revoke the STBV agreement, impose stricter PAYE obligations for business visitors and potential penalties for late compliance.
PAYE Settlement Agreement
Deadlines:- 5 July: Deadline to agree on new PSAs with HMRC
- 22 October: Deadline for payment of tax and National Insurance Contributions (NIC)
Key considerations: Review the benefits provided and confirm that only qualifying benefits are included, as some benefits may be exempt. PSAs are often more cost-effective than grossing up through the payroll so a cost comparison of each benefit should be undertaken. Note that separate computations may be needed for England and Northern Ireland, Scotland and Wales.
Risks of missing deadline: Without a PSA in place, benefits must be taxed directly on the employees.
P11D and P11D(b) Reporting
Deadlines:- 6 July: Submission of P11D and P11D(b)
- 22 July: Pay Class 1A NIC
Key considerations: Benefits reporting can be complex. Certain trivial benefits are exempt, and the GBP 150 exemption for annual staff events requires careful application. Traditional reporting of benefits in kind is being phased out, with payrolling of most benefits mandatory for 2026/27.
Risks of missing deadline: Late submissions will result in penalties.
Share Reporting
Deadline: 6 JulyKey considerations: Returns must be filed for all open ‘plans,’ including nil returns where no ERS activity has taken place in the tax year. Internationally mobile employees should also be considered as reporting obligations may still apply.
Risks of missing deadline: Penalties are imposed for late or inaccurate returns.
Final Thoughts
With multiple deadlines approaching, employers should carry out a final compliance review, reconcile relevant data and ensure all filings and payments are completed on time. Prompt compliance not only mitigates the risk of penalties but also demonstrates strong governance practices.Stuart Strong
BDO in the UK