What is a P11D?

The P11D form is used by employers to report expenses and benefits provided to directors and employees that are not processed through payroll. Examples include company cars, health insurance, and other non-cash benefits. Each director or relevant employee must receive a separate P11D form.

The P11D(b) form is related but distinct. It is used to declare the total Class 1A National Insurance Contributions due on the expenses and benefits reported through the P11D forms.

How to Submit

Employers must submit their P11D and P11D(b) forms through one of the following methods:

  • PAYE Online for Employers
  • Commercial Software

You can find further detailed guidance in HMRC’s “480” document.

HMRC has mandated electronic filing for these forms. Paper forms are not accepted unless in specific exceptional circumstances, such as for insolvency practitioners​.

When to Complete

You need to complete a P11D form at the end of each tax year if you have provided any expenses, benefits, or facilities to your employees or their families. This includes payments made to or on behalf of employee’s spouses, children, parents, and any dependants.

Important Exclusions and Considerations

  • No P11D Needed: If you pay tax on all benefits through payroll, no P11D is required for those employees, although a P11D(b) will still be necessary for Class 1A National Insurance purposes.
  • Exempt Payments: You do not need to report expenses, payments, or Benefits in Kind (BiK) that are covered by a PAYE Settlement Agreement or are exempt, such as paid or reimbursed expenses.

Penalties for Non-Compliance

Employers face penalties for failing to make returns or submitting incorrect returns, whether done carelessly or deliberately. The deadline for the 2023 to 2024 returns is 6th July 2024.

Employers must adhere to this deadline to avoid potential fines.

Additional Details for Specific Expenses and Benefits

  • Cars and Car Fuel: List the cost, including all charges, of cars available for private use by employees, and calculate the benefit charge based on the car’s CO2 emissions and type of fuel.
  • Loans: Report any interest-free or low-interest loans provided to employees where the interest paid by the employee was less than the official rate.
  • Living Accommodation: If you provide living accommodation, you must report the cash equivalent unless exempt.

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