What is a P11D form?
In short, a P11D is a form that UK companies fill out after the tax year wraps up.
It's all about the extra perks or benefits in kind that employees or directors get from their work, like a company car or healthcare perks.
Benefits in kind are all the extras that your business offers its employees that are of monetary value and are not wholly necessary for them to complete their job. These need to be declared annually via a P11D form to help HMRC determine how much tax is owed.
💡 You'll need to complete a P11D form for each employee that you've provided with taxable benefits or expenses, that weren't payrolled. You'll then need to complete a P11D(b) form that summarises all of the P11Ds you filled out for your employees.
What are the types of benefits reported on a P11D form?
Company cars and vans, plus the fuel
Private medical insurance
Employer loans above £10,000 (where no or low interest is charged)
Living accommodation
Assets lent to employees for personal use
What details does the P11D form require?
The name, address, and National Insurance number of the employee
A description of the benefits
The value of each benefit and what it cost the company
Any salary sacrifice arrangements that affect the taxable value of the benefit
Who needs to file a P11D?
It's the employers responsibility to file a P11D form for each employee receiving benefits in kind. Company directors with no employees will need to submit both the P11D and P11D(b) each year.
You won't need to submit a P11D if you're paying tax on the benefits through payroll - these will be registered with HMRC online instead. But you will still need to fill out the P11D(b) to pay any Class 1A National Insurance that you owe.
If none of your employees have received any taxable benefits during the financial year, you won't need to file a form.
Who pays P11D tax and how is it calculated?
Both the employer and employee are responsible for paying P11D-related taxes, but they're different types of tax.
The employer
Employers are responsible for paying Class 1A National Insurance contributions (NICs) on the benefits reported on a P11D. This payment is made separately by the employer to HMRC.
The employee
Employees pay income tax on the value of the benefits that they receive, as they're considered part of their total taxable income. HMRC will use the information provided on the P11D form to adjust the employee's tax code. The tax is then collected through PAYE.
If an employee needs to fill our a Self Assessment tax return, they must include the value of the benefits there and pay the tax due.
How to submit a P11D
P11Ds must be submitted online as HMRC no longer accepts paper P11D filings.
PAYE Online Service: Businesses with fewer than 500 employees can submit their forms through HMRC's PAYE online service
Commercial software: Businesses with more than 500 employees can submit their forms through their payroll software
For more information on how to submit a P11D and P11D(b) form, head to gov.uk.
What is the P11D deadline?
Your P11D must be submitted by 6th July following the end of the tax year.
You must also submit an online form to HMRC at the end of the tax year for any Class 1A National Insurance you owe.
Wrapping up
So there you have it: The P11D form is your business's way of keeping things transparent and fair when it comes to those extra work perks.
Remember, it’s all about staying on top of those deadlines and making sure everyone pays the right amount of tax.
Image from Unsplash published by uns__nstudio
