Small Business Accounting

What is a P11D Form

If you're just getting started on figuring out what a P11D form is, this article is for you.

By

Chris Andreou

expense payment and benefit in kind (BIK) calculations for P11D form

What is P11D?

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.

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.

Who Needs to File a P11D?

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

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

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 2024 must be filed by 6th July 2024. 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.

Do I Need to Give Employees a Copy of Their P11D?

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.

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