P11Ds were due for submission on 6 July. However, once benefits and expenses have been reported to HMRC, employers must also ensure that any Class 1A National Insurance Contributions (NICs) arising from those benefits are paid on time.

The deadline for paying Class 1A NIC is 22 July if paying electronically, or 19 July if paying by post, and failure to meet the payment deadline can result in interest charges and potential penalties.

What is Class 1A NIC?

Class 1A National Insurance is payable by employers on certain taxable benefits provided to employees and directors and are normally reported to HMRC on a P11D(b).

Class 1A NIC is an employer liability only, therefore it is not deducted from employees’ pay and does not affect the employee’s own National Insurance contributions.

Common benefits that may attract Class 1A NIC include:

• Company cars and fuel benefits
• Private medical insurance
• Beneficial loans
• Living accommodation
• Certain other non-cash benefits and perks

Late payment penalties

Once a P11D has been filed, any amounts due to HMRC become a known liability. Employers should therefore ensure that sufficient funds are available and that payment arrangements are made well before the deadline.

Late payment can lead to:

• Interest being charged on the outstanding balance
• Possible late payment penalties
• Additional administrative work in dealing with HMRC

What if you cannot pay?

Where a business has genuine difficulty in settling its Class 1A NIC liability in full by the due date, HMRC may be willing to discuss a Time to Pay arrangement. Such arrangements are considered on a case-by-case basis and typically require HMRC to be satisfied that the business cannot pay immediately but can do so over an agreed period.

With the reporting deadline of 6 July followed shortly by the payment deadline of 22 July, employers should take the opportunity now to review their position, confirm the amount due and ensure arrangements are in place for payment.

Need advice on P11Ds, employee benefits or employer National Insurance obligations? Our tax specialists can help you navigate the requirements, manage compliance risks and ensure deadlines are met with confidence.