Small Business Accountants

What is a P11D - Benefits in kind?

A P11D is the form employers submit to HMRC each year to report non-cash benefits provided to employees and directors. These benefits in kind, ranging from company cars to private medical insurance, may trigger an income tax charge for the recipient and a Class 1A National Insurance charge for the employer. The filing deadline is 6 July following the end of each tax year.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

What is a P11D - Benefits in kind? - GoForma Tax Guides | UK Accountants & Tax Advisors

Key takeaways

Employers must file a P11D for each employee or director who received a benefit in kind during the tax year, with the deadline falling on 6 July following the end of that tax year.
The companion form P11D(b) reports the total Class 1A National Insurance due on all benefits; the rate is 15% for 2025/26, up from 13.8% in the previous year.
Common benefits that must be reported include company cars, private medical insurance, living accommodation, and beneficial loans exceeding £10,000 in value.
Employers can choose to payroll benefits instead of filing a P11D, taxing them through the payroll in real time; from April 2026, payrolling of most benefits becomes mandatory.
A penalty of £600 applies for each P11D form that is filed late or contains an error, so accurate and timely reporting is essential to avoid unnecessary costs.

The P11D is a tax form which records benefits in kind that employees and directors of a company have received across the year. The information provided on the form enables HMRC to work out if the individual needs to pay tax on these benefits.

Frequently asked questions

What is a P11D form?

A P11D is a statutory form that employers submit to HMRC to report benefits in kind provided to employees and directors during a tax year. Benefits in kind are non-cash perks that have monetary value, such as a company car or private medical insurance. HMRC uses the information to calculate how much income tax the recipient owes on those benefits and how much Class 1A National Insurance the employer must pay.

Who needs to submit a P11D?

Employers must submit a P11D for every employee or director who received a taxable benefit in kind during the tax year. This includes company directors regardless of how much they earn. A separate P11D is required for each individual who received benefits; it is not a single company-level return. Employers who payrolled all their benefits through the payroll system do not need to file a P11D for those payrolled items.

What are the P11D deadlines for 2025/26?

The P11D and the companion P11D(b) return must both be filed with HMRC by 6 July 2026, following the end of the 2025/26 tax year. The Class 1A National Insurance liability shown on the P11D(b) must be paid by 22 July 2026 if paying electronically, or by 19 July 2026 if paying by post. Missing these deadlines triggers automatic penalties, so early preparation is strongly advisable.

What is the Class 1A NIC rate on benefits in kind?

The Class 1A National Insurance rate for 2025/26 is 15%, which is higher than the 13.8% that applied in previous years. Employers calculate the total taxable value of all benefits reported across their P11D forms and apply this rate to arrive at the Class 1A liability shown on the P11D(b). Class 1A NIC is paid only by the employer; employees do not pay National Insurance on most benefits in kind.

Which benefits in kind are most commonly reported on a P11D?

The most frequently reported benefits include company cars (valued using the list price multiplied by a CO2-based percentage, with electric cars attracting a 2% rate in 2025/26), private medical insurance, living accommodation, and beneficial loans above £10,000. Other reportable benefits can include gym memberships, non-trivial gifts, and certain travel expenses. Small perks that meet the trivial benefits criteria (costing £50 or less per occasion) are exempt and do not need to be reported.

What is payrolling of benefits and how does it affect P11D?

Payrolling is a method that allows employers to collect income tax on benefits in kind through the payroll each pay period, rather than reporting them on a P11D at the year end. When benefits are payrolled, no P11D is needed for those items. From April 2026, payrolling becomes mandatory for most employers. Employers must register with HMRC before the start of the tax year in which they intend to use it.

What is the penalty for a late or incorrect P11D?

HMRC charges a penalty of £600 for each P11D form that is filed late or contains a material error. This applies per form, so an employer with multiple employees who received benefits could face several penalties simultaneously. Interest also accrues on late Class 1A National Insurance payments. Filing accurate returns on time and keeping supporting records throughout the year are the most effective ways to avoid these charges.

Are any benefits exempt from P11D reporting?

Yes. Benefits that qualify as trivial benefits are exempt from P11D reporting. To qualify, a benefit must cost £50 or less per occasion, must not be cash or a cash voucher, must not be a reward for services performed, and must not be contractually required. Directors of close companies face an additional annual cap of £300 across all trivial benefits. Employers should keep informal records of trivial benefits given in case HMRC raises a question at a later date.

Need help with this for your business?

Book a free 20-minute call with one of our MAAT or ACCA qualified accountants. We will tell you honestly whether we can help.

203 5-star reviews

ACCA & AAT qualified

Set up in 24 hours