If you provide employees or company directors with benefits outside of their salary, you may need to report them to HMRC using a P11D form. Failing to do this correctly, or on time, can lead to penalties and unexpected tax bills.
In this guide, we explain what a P11D is, who needs to submit one, when it must be filed, and what happens if you get it wrong.
If you are looking for an expert accountant in UK, Kent, Gravesend, contact Clayton Stirling & Co today.
What Is a P11D?
A P11D is a form used to report Benefits in Kind (BIKs) and certain expenses that employees or directors receive from their employer but are not included in payroll.
These benefits have a monetary value and are treated as taxable income by HMRC, even though they are not paid in cash. The P11D allows HMRC to calculate how much Income Tax the employee owes on these benefits.
Common benefits reported on a P11D include company cars, private medical insurance, interest-free loans, living accommodation, and personal use of company assets.
Who Needs to Submit a P11D?
Employers must submit a P11D for each employee or director who receives taxable benefits that are not payrolled.
This includes:
- Limited company directors
- Full-time and part-time employees
- Business owners receiving benefits through their company
If benefits are processed through payroll instead, a P11D may not be required for those specific benefits.
What Is a P11D(b)?
In addition to individual P11Ds, employers must also submit a P11D(b).
The P11D(b) is used to report and pay Class 1A National Insurance on the total value of Benefits in Kind provided during the tax year. This is an employer-only charge and does not affect the employee directly.
When Does a P11D Need to Be Submitted?
P11D forms must be submitted to HMRC by 6 July following the end of the tax year.
For example, benefits provided during the 2024/25 tax year must be reported by 6 July 2025.
The Class 1A National Insurance due via the P11D(b) must be paid by:
22 July if paying electronically
19 July if paying by cheque
Missing these deadlines can result in penalties and interest.
How Does a P11D Affect Employees?
Once HMRC receives the P11D information, it adjusts the employee’s tax code so that Income Tax is collected on the value of the benefits.
This usually means the employee pays a small amount of extra tax each month through PAYE, rather than a one-off bill.
What Happens If a P11D Is Submitted Late or Incorrectly?
Late or incorrect P11Ds can result in HMRC penalties, interest charges, and additional administrative work to correct errors. Employees may also be affected, as incorrect reporting can lead to underpaid tax and sudden changes to their tax code.
In more serious cases, repeated mistakes can increase the risk of an HMRC compliance check, particularly for businesses that regularly provide employee benefits.
Do You Still Need a P11D If Benefits Are Payrolled?
If you choose to payroll Benefits in Kind, tax is collected in real time through PAYE and a P11D may not be required for those benefits.
However, you must register for payrolling benefits with HMRC before the start of the tax year, and you may still need to submit a P11D(b) for Class 1A National Insurance.
How an Accountant Can Help With P11Ds
P11Ds can be complex, particularly for businesses with multiple employees or directors. An accountant can help ensure benefits are correctly identified, accurately valued, and reported on time.
For businesses in Kent, working with a local accountant means expert guidance tailored to UK tax rules and HMRC deadlines — helping you stay compliant while avoiding unnecessary tax or penalties.
Need Help With P11Ds or Employee Benefits?
If you’re unsure whether you need to submit a P11D, or want to simplify the process, professional advice can save time and prevent costly mistakes.
An experienced accountant can manage your P11Ds, Class 1A National Insurance, and employee benefits efficiently, giving you peace of mind.
