An understanding and the correct filing of P11Ds is crucial to ensure you stay compliant with UK tax law, which is why bookkeeping and proper record-keeping is vital. In this guide we break down the basics of P11Ds and the common pitfalls to avoid.
What is a P11D?
What is a P11D?A P11D is a form submitted by employers to report benefits-in-kind (BIK), essentially non-cash perks, provided to employees or directors that are separate from salary.
Do I Need to File a P11D?
It’s a legal requirement to report taxable expenses or benefits provided to employees to HMRC, which can either be done through payroll or online at the end of every tax year. If you don’t pay these through payroll then you will need to fill out a P11D for each employee, including part-time employees and those who have left the company during the year. If you have less than 500 employees then P11D forms can be submitted through HMRC’s PAYE online service.
P11Ds must be submitted to HMRC by the 6th July, and this is also the deadline by which employees should be provided with a copy of their individual P11D. For late submission, you’ll face a penalty of £100 per 50 employees for each month or part month you’re late.
Employers are required to calculate and pay Class 1A NICs on most benefits provided. The rate is usually a percentage of the taxable value of the benefit, for which the deadline is 22nd July when paying electronically or the 19th if paying by cheque.
What Should be Included on a P11D?
Alongside the employee and employer details. These are the types of benefits that should be listed –
- Interest-free and low-interest loans – such as a season ticket loan
- Company cars and fuel
- Private medical insurance
- Accommodation
- Assets provided to employees – such as laptops or phones
- Payments made on behalf of employees – such as professional subscriptions
- Vouchers or company cards
How Is P11D Tax Calculated?
Employees must pay tax on the value of the benefits received, which is usually done through an adjustment to their PAYE code. Calculating the tax on P11Ds involves determining the taxable value of each benefit provided and applying the appropriate tax rate. The P11D helps HMRC adjust the employee’s tax code to reflect this.
Changes to P11Ds
As of April 2026, we will be moving away from P11Ds. HMRC has announced that reporting and paying income tax and NIC on benefits will all need to be done through payroll; so you’ll need to make sure your payroll software is capable of integrating benefits directly.
The Common P11D Mistakes
- Miscalculating the taxable value of benefits
- Reporting incorrect details
- Failing to report all taxable benefits provided to employees
- Miscalculating or failing to pay Class 1A NICs
- Failing to provide employees with copies of their P11D forms
P11Ds and tax can be tricky, which is where we come in. We help you to avoid the common pitfalls, penalties and late fees, saving you time and money in the long run. Click here to get help with your filing.