If you're just getting started on figuring out what a P11D form is, this article is for you.
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. The information provided enables HMRC to figure out if you're required to pay tax on these benefits.
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.
There's also the P11D(b) 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. 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.
What to include in a P11D
It can be confusing trying to figure out the types of expenses and benefits that you need to record on the form.
Here's a quick overview of what you need to include:
- company cars
- health insurance
- non-business travel expenses
- non-business entertainment expenses
- company assets provided or transferred to employees or directors that have significant personal use
What not to include in a P11D
As of 6th April 2016, employer dispensations have been replaced by exemptions.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
Who needs to file a P11D
The P11D form is filed at the end of the tax year by the employer. If you're self-employed, you'll need to file the form, as you're essentially both an employer and employee.
P11D filing and payment deadlines
The P11D forms should be filed by 6th July following the tax year in question.
That means that your P11D for the tax year ending April 2023 must be filed by 6th July 2023. Any tax due must be paid up by 22nd July.
P11D late filing penalties
You won't pay penalties immediately if you miss the 6th July deadline, as you're given about two weeks more to set things right. If you still haven't submitted the form after these two weeks, your company will be fined £100 per month per 50 employees.
Plus, penalties and interest are incurred if you're late in your payment. In the event that your P11D is incorrect, you could be charged a penalty if HMRC determines that you've been careless or deliberately provided false information.