Forms P11D – Submission deadline is approaching

Written by Chris Barlow

January 19, 2022

Reminding you that P11D forms must be filed by 6th July 2022 and that we are here to help.

We’ve put together a helpful guide on P11D’s, to help you understand what you need to include, when you need to file, and – most importantly– what happens if you don’t fulfill your P11D duties.

The P11D is a statutory form used to tell HM Revenue and Customs (HMRC) about your benefits in kind. These are items or services which you (or your employees) receive from your company in addition to your salary. These can include private healthcare, company cars, and interest-free loans. The annual P11D form allows you to report these benefits to HMRC on your annual Self Assessment return.

What you need to do

  • Submit your P11D forms online to HMRC. 6 July following the end of the tax year.
  • Give your employees a copy of the information on your forms. 6 July.
  • Tell HMRC the total amount of Class 1A National Insurance you owe on form P11D(b). 6 July.
  • Pay any Class 1A National Insurance owed on expenses or benefits. Must reach HMRC by 22 July (19 July if you pay by cheque).
  • If you have a PAYE Settlement Agreement pay tax and Class 1B National Insurance. Must reach HMRC by 22 October (19 October if you pay by cheque).
  • Pay any PAYE tax or Class 1 National Insurance owed on expenses or benefits. Pay monthly through payroll.

You’ll get a penalty of £100 per 50 employees for each month or part month your P11D(b) is late. You’ll also be charged penalties and interest if you’re late paying HMRC.

What is a P11D?

As benefits in kind effectively increase your salary, there may be National Insurance contributions (NICs) to be paid on them. These contributions will be paid by the employer and not the individual.

Who needs to file a P11D?

P11Ds must be submitted by the employer, and not the employee (although, for many freelancers and contractors, they’re one and the same).

If an employee doesn’t receive any taxable expenses or benefits then they may not receive the form at all.

When do I need to file a P11D?

P11D’s must be filed by 6th July following the end of the tax year. So, your P11D for the tax year running 6th April 2021 to 5th April 2022 must be filed by 6th July 2022.

What needs to be included in a P11D?

Any items the company pays for which the employee benefits from must be recorded on the P11D form. Generally, these are items such as:

  • Company cars
  • Loans for rail season tickets
  • Other loans
  • Health insurance
  • Assets provided to an employee that have significant personal use
  • Self Assessment fees paid by the company
  • Non-business travel expenses
  • Non-business entertainment expenses

P11D exemptions for certain business expenses

From 6 April 2016, all dispensations stopped. Almost all expenses or benefits that might previously have been covered by a dispensation will be within an exemption and will not need to be reported. Where the employer is satisfied that either all the expenses or benefits or both, that they provide would be fully covered by the expenses exemption they do not need to show these on forms P11D or deduct tax if they payroll benefits.

You don’t have to report certain business expenses and benefits like:

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

You can find more information on reporting end-of-year expenses and benefits to HMRC here

Source: GOV.UK