At present employers have to submit a P11D form after the end of the tax year for every employee who is paid £8,500 a year or more and also for every director even if there are no benefits to report. This means that employers have to submit millions of blank P11D forms.
All these irrelevant forms have to be logged, reviewed and filed by HMRC and copies of them have to be retained by employers for six or seven years. This wastes a significant amount of time and effort for both employers and HMRC.
Millions of pounds could be saved if the requirement were just that a P11D form is required to be submitted to HMRC if a director or an £8,500 employee has a benefit-in-kind in the tax year.