JAAMA ENHANCES P11D DATA VALIDATION WITHIN ITS KEY2 SYSTEM
Jaama has made further improvements to the benefit-in-kind reporting capability of its industry-leading Key2 Vehicle Management system which now provides employees’ with the ability to ‘pre-validate’ their annual P11D declaration.
The service pack update is welcomed by Jaama customers who could face a maximum penalty of £3,000 for each incorrect P11D submission and is especially important in light of HM Revenue and Customs recent announcement that thousands of employee tax codes could be incorrect.
All employers must submit completed employee P11D forms containing all of the benefits-in-kind provided within the previous tax year to the HM Revenue and Customs. Additionally, employers must report and pay the related Class 1A National Insurance contributions associated with the benefits they’ve provided.
The P11D reporting upgrade automates the process of sending employees’ a letter or email containing a summary of the benefits received during the preceding tax year.
Martin Evans, Jaama’s sales and operations director, said: “This enhancement enables individual drivers to check and report any anomalies for correction in advance of the production and submission of the P11D form itself.
“We believe this to be an extremely useful tool, particularly in light of the current well publicised concerns in relation to widespread problems in relation to claims that many employees are being sent wrong tax codes.”
HM Revenue and Customs has admitted that approximately 2% of tax codes will be incorrect meaning 360,000 wrong notices being sent out of the around 18 million distributed. More than 700 fleets across the UK use Jaama’s Key2 software to manage their fleet operation.
The tax office state that such errors are caused by the latest data not being available from employers or inaccurate information being supplied by organisations or employees
Mr Evans said: “The ability of employees to see tax details in relation to company cars and other benefits-in-kind prior to the formal P11D submission to HM Revenue and Customs should improve the accuracy of data provided which will have been checked and verified well in advance.”
Some fleet decision-makers have already discovered that their company car drivers are among those that have been given wrong tax codes, which is likely to result in incorrect deductions until the error can be corrected.
As a result, ACFO (Association of Car Fleet Operators) is surveying its members to ascertain the extent of the problem and has pledged to compile a dossier of evidence that it will take to HM Revenue and Customs.
The Key2 P11D service pack upgrade also includes:
- Managers enabled to have access to data for their P11D reporting responsibilities which can be restricted to just employees within their associated organisational structure.
- The ability to produce single P11D forms by excluding one or more employee from the validation process thus reducing waiting time for all employees to have company vehicle details validated
- The ability to generate and print P11D details to send a letter to employees who either don’t have an email address or have left the organisation.
- Additionally, although fleets using Key2 have been previously able to electronically submit P11D(b)* returns to the tax office in a single transaction across a secure internet connection, via the Government Gateway - the centralised registration service for e-Government services in the UK - the new service upgrade enables the return to be produced automatically for the first time.
Mr Evans said: “HM Revenue and Customs is reliant on data being given to them. Therefore, it is vital to ensure that P11D-related information is exact so correct tax codes can be issued to employees.
“The upgrade to Key2’s P11D reporting capability further improves employers’ reporting procedures and meets HM Revenue and Customs’ accounting requirements.”
*HM Revenue and Customs’ form P11D(b) relates to Class 1A National Insurance contributions due from employers.