What is a P11D Form?

The P11D is a tax form that records employment benefits that the employees and directors of a company have received across the year. P11D form is a declaration that employers must submit to HMRC annually. It reports the value of any benefits and expenses provided to employees that aren't included in their salary. These benefits might include things like company cars, private health insurance, and interest-free loans.

Each P11D form includes your basic identifying information, along with various sections that cover a range of benefits and expenses-from accommodation, to vouchers, credit cards and mileage allowance.

Accurate completion of the P11D form is essential to calculate the correct tax liability for both employers and employees. It must be filed by July 6th of each tax year and is a crucial part of payroll and tax returns. Employers can submit the P11D form online through HMRC's PAYE online service or utilizing third-party software.

What is P11D(b) Form?

The P11D(b) form is a separate declaration that accompanies the P11D form. This form sums up the total amount of taxable benefits that an employer has provided for its employees, and indicates the amount of Class 1A National Insurance due on the expenses and benefits provided. Employers must submit both forms together, ensuring that the correct taxes are paid. Payment of Class 1A NICs is due on 22nd July (online) or 19th July (cheque)

You'll need to submit a P11D(b) form if:

• you've submitted P11D forms
• you've paid your employees' expenses or benefits through your payroll
• you've received a reminder from HMRC

Tip: Don't get the P11D mixed up with the P9D form. The latter is submitted when your employees' annual earnings fall below £8,500.

Employers are obligated to file a P11D form if they provide their employees with any taxable benefits or expenses. This includes company directors and even employees who earn less than the tax threshold. Essentially, if your employees receive benefits beyond their basic salary, the P11D form becomes a vital aspect of your tax compliance. If you're self-employed, you'll need to file the form, as you're essentially both an employer and employee.

What to Include in a P11D

The P11D form is the go-to document for reporting "benefits in kind," which are essentially the extra benefits employees get on top of their salary.

The information typically includes details about expenses or benefits such as:

• Company cars and fuel
• Health insurance
• Non-business travel expenses
• Non-business entertainment expenses
• Loans provided to employees
• Company assets provided or transferred to employees or directors that have significant personal use

Sample P11D Form

Below is the sample of how P11D form looks like:

As of 6th April 2016, employer dispensations have been replaced by exemptions.

This means that business expenses that are reimbursed or paid on behalf of employees are exempt from tax, and will not need to be included in a P11D form.

Some examples of these expenses include:

• business travel 
• business entertainment expenses
• professional fees and subscriptions
• uniform and tools for work
• phone bills

The P11D form must be submitted by July 6th each tax year to avoid penalties. For the tax year 2024/25, the P11D deadline is July 6, 2025. This deadline covers benefits and expenses provided to employees during the previous tax year, which runs from April 6th to April 5th. The submission can be done online, or using third-party payroll software. It serves as the basis for payrolling benefits or filing the P11D(b) form.

1. For late submission of P11D form, a penalty of £100 is imposed per 50 employees for every full month of delay.
2. In case of late payments for any National Insurance Contributions (NICs) owed, a penalty charge of 5% is incurred after 30 days of the due date. This penalty increases to 10% after 6 months and further escalates to 15% after 12 months, in addition to any accrued interest.

A penalty may apply if you provide inaccurate information in your tax return either carelessly or deliberately, leading to:

• underpaying taxes
• over-claiming tax reliefs

Yes, employers must legally share with employees the details they share with HMRC regarding benefits in kind. If employees are self-employed or company directors, they'll use this info for their self assessment tax return. They can also request a copy from HMRC.

PAYE Settlement Agreements (PSAs)

You can make one annual payment to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for your employees if you have a PAYE Settlement Agreement (PSA) with HMRC.

Under the PSA, you don't need to:

• put the expenses and benefits through your payroll to work out tax and National Insurance
• include expenses and benefits in your end-of-year P11D forms
• pay Class 1A National Insurance on expenses and benefits at the end of the tax year (you pay Class 1B National Insurance as part of your PSA instead)

Payrolling of Benefits

Payrolling of benefits is a convenient alternative to filing the P11D form. It allows tax deductions through payroll software, eliminating the need for form submission. You won't have to submit a P11D if an employee's expenses and benefits have been included in their regular pay through payrolling. Payrolling of benefits means that payroll software includes the value of benefits and expenses into employees' regular pay, rather than reporting them separately to HMRC at the end of the tax year. It's important to note that certain expenses and benefits cannot be included in payrolling. However, unlike the P11D form, if expenses and benefits have been payrolled, you still must submit a P11D(b) form.

The main difference between the P11D and P11D(b) forms is their purpose. The P11D form is used to report employee benefits, while the P11D(b) form is used to account for tax. Additionally, the filing deadline for both forms is July 6th. The P11D form is necessary when benefits are not payrolled, whereas the P11D(b) form is required when benefits are payrolled. Furthermore, the P11D form is employee-specific, while the P11D(b) form is company-wide.

Ready to Get Started?

Filing your P11D and P11D(b) forms accurately and on time is essential to avoid penalties and ensure compliance with UK tax regulations. Unsure on your P11D deadlines? Get help from one our small business accountants who can help with registration to filing.

FAQs on P11D

When is P11D Due?

The deadline for submitting the annual P11D and P11D(b) forms to HMRC is typically on July 6th following the end of the tax year. For the tax year 2024/25, the P11D deadline is July 6, 2025.

What If I Have No BiKs or Expenses to Report?

Even if you have no benefits in kind or expenses to report, you must still submit a 'nil return' P11D form. This ensures compliance with HMRC regulations, and it's important not to miss the deadline.

Who needs to file a P11D?

To comply with tax regulations, your company must fill out and submit a P11D form separately for every "relevant employee" or company director who has received benefits-in-kind in addition to their regular salary during the fiscal year. The obligation to complete and file a P11D form lies with the employer, and it is not the responsibility of the employee.

When should my employer give me my P11D?

Your employer should provide you with your P11D form by July 6th each year. You should keep P11D form as you may need it to complete a tax return or to claim a repayment of tax.

Does P11D affect my tax code?

Yes, the information on your P11D form can affect your tax code. The amount reported on the P11D form represents additional employment income in the form of taxable benefits and expenses which HMRC uses to adjust your tax code accordingly for accurate tax deductions from your salary.