What is a P11D? A Practical Simplified Guide for Employers
If your team receives benefits such as company cars, health insurance, or gym memberships in addition to their salary, you may need to submit a P11D form. Here’s what you need to know to stay compliant and avoid any costly surprises.
What is a P11D?
The P11D is a statutory form used to report benefits in kind—non-cash perks provided to employees or directors that carry a monetary value. These benefits are not ‘wholly, exclusively and necessarily’ required for their job role, and as such, may be subject to tax and Class 1A National Insurance contributions.
It’s your responsibility as an employer to submit these details to HMRC each year for the previous tax year.
What is a P11D(b)?
Alongside individual P11D forms for each employee, the company must also complete a P11D(b) form. This is a summary return that confirms:
- You’ve submitted P11Ds
- The total amount of Class 1A National Insurance due
Key Deadlines
For the 2024/2025 tax year:
- P11D and P11D(b) submission deadline: 6 July 2025
- Payment deadline for Class 1A NIC (if paying electronically): 22 July 2025
Who Needs to File?
As an employer, you need to file a P11D for every employee or director who has received taxable benefits in kind.
However, you do not need to submit a P11D if:
- No benefits were provided during the tax year
- You’ve opted to ‘payroll’ the benefits (i.e., deduct tax via payroll). In this case, you still need to submit a P11D(b) to pay the associated NIC.
Important: Sole directors with no other employees must also submit a P11D and P11D(b) annually if they receive reportable benefits.
Exemptions: What Doesn’t Need to Be Reported?
Some costs are considered allowable business expenses and do not require reporting on a P11D. These include:
- Business travel
- Subscriptions to professional bodies
- Business credit card use (where the card is only used for business purposes)
If you’re a sole trader or freelancer, you don’t need to worry about P11Ds—these types of costs are handled via your self-assessment tax return.
How to File Your P11D
Since 6 April 2023, P11Ds can only be submitted electronically. Options include:
- HMRC’s PAYE Online Service
- HMRC-recognised payroll software
You’ll need:
- Company and employee details
- A breakdown of each benefit provided
- The value of those benefits
What Happens If You Miss the Deadline?
Missing the 6 July deadline can result in penalties of £100 per month (or part month) for every 50 employees. Prompt action is strongly advised to avoid these charges.
After You Submit
Once submitted, you must also provide each employee or director with a copy of their individual P11D by 6 July.
It’s also good practice to retain thorough records, including:
- Dates of benefits provided
- Benefit descriptions
- Calculated values
PAYE Compliance Checks
HMRC may carry out checks to ensure your payroll and benefit records are accurate. This could include a site visit to review payment and benefit history, as well as ensuring that all submissions and calculations meet the latest statutory requirements and reporting deadlines.
Need a hand managing your payroll and compliance responsibilities?
At IN Accountancy, we help business owners reduce the admin burden and remain fully compliant. From payroll processing to benefit reporting, we’re here to keep things simple, accurate, and on time, so you can focus on running your business without the worry of penalties or errors.
Feel free to get in touch if you need support filing your P11D,or if you’d simply like peace of mind knowing it’s all being handled correctly and professionally.
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