What you need to know when completing a P11D form

The P11D form functions as a reporting mechanism for benefits in kind received by employees and directors. Where employers give their employees and directors employment benefits, the employer must complete and submit form P11D for each person receiving benefits. The P11D will need to be sent to HM Revenue & Customs (HMRC) each year. 

What to include on a P11D? 

Benefits provided to employees and directors must be included on the form. Benefits in kind are benefits that employees and directors receive which are not included in their salary or wages. These benefits, or rewards, are sometimes taxable and taxable benefits are known as benefits in kind. 

Typical benefits included, but are not limited to, the following: 

• Company Car and/or Fuel 
• Company Vans (provided for personal use) 
• Private Medical Insurance 
• Gym membership 
• Employer loans over £10,000 (no/low interest charged) 
• Professional and Private memberships 
• Assets provided to an employee with significant personal use 

The value of the benefit is included on the form, along with the tax paid. HMRC will review the form to check that the correct amount of tax has been paid. HMRC can also use the updated information and values to calculate an individual’s tax code for the following year. 

Do I need to submit a P11D? 

Employers must submit a P11D form for all employees and directors who receive benefits. 

If an employer ‘payrolls’ the benefit (taxes them along with employees’ pay on the payroll), these benefits do not need to be reported on a P11D form. 

Employers do not need to show expenses, payment or benefits in kind covered by a PAYE (Pay As You Earn) settlement agreement on a P11D form. 

When to submit a P11D? 

You must complete and submit the P11D form to HMRC annually by 6th July for the previous tax/payroll year. You must report benefits paid for the year 6th April 2023 to 5th April 2024 to HMRC by 6th July. 

A further form, P11D(b), must also be submitted to HMRC which reports the Class 1A National Insurance Contributions payable. Class 1A National Insurance payments must be with HMRC by 22nd July (or 19th July if paying by cheque). 

The employer must submit both forms electronically. Late filing of the P11D and P11D(b) will result in penalties being applied after a 14-day window. 

The P11D form should be given to the employee that it relates to for inclusion on their self-assessment tax return if necessary, as well as informing them of the tax deduction. 

How do I submit a P11D and P11D(b)? 

P11Ds can be complicated and, depending on the number of employees you have, time-consuming. You may therefore want to think about asking your accountant to prepare the P11Ds for you.  

A P11D and P11D(b) can be submitted through PAYE online for employers or commercial payroll software. If you have less than 500 employees, you can choose either method. If you have more than 500 employees, you must use your payroll software. 

If you have made an error, you can fix this by completing a P11D or P11D(b) correction form. 

Changes from April 2026  

From April 2026, it will be mandatory to report employment benefits and pay Class 1A National Insurance Contributions (NIC) through payroll software. These changes from HMRC will remove the need for employers to submit forms P11D to HMRC and pay Class 1A NIC separately.  

Reporting expenses and benefits for the tax year ending 5th April 2024  

From 6th April 2023, HMRC stopped accepting new informal arrangements. If you have had an informal arrangement in place, you must now register to payroll expenses and benefits for 2024/25.  

If you include payroll expenses and benefits in your employees' pay, you do not have to submit a P11D form. However, employers may still be responsible for Class 1A NIC payments. You will need to: 

• Submit a P11D(b) online to tell HMRC your employer Class 1A NIC liability  
• Give employees a letter explaining what expenses and benefits you have payrolled  

How we can help 

TaxAssist Accountants can help you keep on track with your finances. Speak to our experts who can assist you in completing your P11Ds as well as providing you with ongoing support and advice. Call us on 01322 553597 or use out online contact form. 

Date published 25 Apr 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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