Profit from P11D Preparation – A Client’s Story
Accountant Ray Backler tells of his experience with P11D’s and how he is now profiting from providing this service.
Whilst we seek to get dispensation for as many employees as possible it is inevitable that there are P11D’s that have to be submitted at year-end. Historically this was a pain and the charge to clients barely covered the cost of the work done. Now things are different!
The issue was that relevant data, most obviously from expense and mileage claims but also considering other factors like company cars and director’s loan accounts (there are still a few that are overdrawn!), had first to be collated and then put into a spreadsheet and summarised for the appropriate boxes on the P11D.
Whilst some practices update this data into a P11D piece of software for me it was a case of completing the forms, downloaded from the HMRC website, then scanning and emailing to the client before finally sending it off to HMRC.
The whole process, for my client base, took a week!
This year the situation was very different as I’ve been using Liberty Accounts, unique, fully integrated P11D feature which recorded the transactions as being P11D relevant through the year which meant that all I had to do at the year-end was review the transactions then push a few buttons, it even calculated interest on director’s loans, and the system emailed documentation to my clients and the P11D was submitted online to HMRC.
Today I allow a day to complete all P11D’s saving 80% of my time yet my billing has remained the same!