P11D's are the form that is filed for the vast majority of freelance contractors telling HMRC how much you have received in benefits and expenses such as private health insurance or travel expenses.
Changes recommended by the Office for Tax Simplification which may (watch this space) come into force from March this year will mean that routine business expenses will not need to be reported on the form and any benefits will be processed through your monthly payroll.
At present 4.5 million P11Ds are filed each year and the two simple changes above are expected to reduce this figure by 90%!
This will be a great step forward in reducing the amount of paperwork and red tape involved in being a director but you can rest assured that if the change does not happen then your P11D is still part of our all inclusive service which we prepare and submit for you.
Any questions about P11Ds do give us a call.