Employers must file Form P11D for suspended BIK within 30 days

Nov 30, 2020

Revenue are issuing notices to employers who returned details of taxed BIK for employees in quarter 1 2020, but not in quarter 2 2020 under the concession provided by Revenue under the TWSS scheme (see section 5.4 of Revenue’s TWSS guide). Employers will be required to file a Form P11D, providing details of the suspended BIK within 30 days of receiving the notice. Revenue intends to spread employees’ tax liabilities arising on the suspended BIK in a similar manor to outstanding TWSS liabilities.

A copy of the letter due to issue to employers was provided to Chartered Accountants Ireland. Revenue said that the obligation to file a Form P11D also applies to employers who suspended BIK under the TWSS concession who do not receive a notice now from Revenue to complete the form. 

Revenue also confirmed to Chartered Accountants Ireland that the suspended BIK liability will be collected from the employee in a similar manner as the planned collection of TWSS liabilities i.e. coded forward over a number of years.   Revenue require the Form P11D information from employers to establish the tax liability arising on the suspended BIK and therefore employers must complete within 30 days of receipt of the notice, but Revenue note that earlier submissions would be appreciated.  

Chartered Accountants Ireland asked Revenue to reconsider the 30-day turn around for the Forms P11Ds as the end of year work for employers and their accountants is challenging especially in the current COVID-19 circumstances.  However, Revenue noted that the information in the P11Ds is essential in order to have the employees tax details established for preliminary end of year statements which will start issuing to employees in early 2021. 

Further information on the Form P11D is available in the TDM Part 05-03-08.