P11D: A Guide to P11D Forms

What is a P11D?

A P11D form is a document employers use to report benefits and expenses provided to employees or directors that are not included in their wages or salaries. These benefits and expenses include company cars, private health insurance, interest-free loans, and other non-cash benefits.

The purpose of the P11D form is to ensure that these benefits are appropriately taxed. HMRC uses the information reported on the P11D form to calculate the appropriate tax and National Insurance contributions owed by the employee and the employer.

At the end of each tax year, as an employer, you must provide HMRC with details about any employee or director to whom you have provided any of the above expense payments, benefits and/or facilities.

If either of the following situations represents your situation, you are not required to complete a p11D form

• there are no taxable expenses, payments, or benefits to be returned for an individual
• the expenses and benefits have been taxed through your payroll

A P11D (b) reports any class 1A NIC you are due to pay for the year.

Once all your employees' P11D forms and the P11D (b) have been completed, you submit them through the HMRC's PAYE Online Service. If you haven't already done so, register for the PAYE Online for employer's service with HMRC. To register, visit www.gov.uk/register-employer.

When is the deadline for the P11D forms?

The submission deadline for the 2023-24 P11D, P11D(b) and P9D forms is 6 July 2024. These forms must be submitted via commercial software or HMRC's online facility at www.gov.uk/paye-online.

HMRC no longer accepts paper P11D and P11D(b) forms. Employees must also be provided with a copy of the information relating to them on these forms by the same date.

P11D forms provide information to HMRC on all Benefits in Kind BiKs, including those under the Optional Remuneration Arrangement (OpRAs) unless the employer has registered to payroll benefits.

Report payrolling benefits with a P11D (b)

Payrolling benefits remove the requirement to complete a P11D for the selected benefits. However, a P11D(b) is still required for Class 1A NICs regardless of whether the benefits are reported via P11D or payrolled. The deadline for paying Class 1A NICs is 22 July 2024 (or 19 July if paying by cheque).

How to submit a nil return

Where no benefits were provided from 6 April 2023 to 5 April 2024, and a form P11D(b) or P11D(b) reminder is received, employers can either submit a 'nil return' or notify HMRC online that no return is required. Employers should ensure that they complete their P11Ds accurately, including all the details of cars and loans provided.

Penalties for late filing

HMRC issues penalties of £100 per 50 employees for each month or part-month a P11D(b) is late. There are also penalties and interest for late payments of Class 1A NIC.

What is a PAYE settlement agreement, and when is the deadline for submitting and paying?

A PAYE Settlement Agreement (PSA) allows an employer to make a single annual payment to cover all tax and National Insurance due on minor, irregular, or impracticable expenses or benefits for employees (please contact your local Haines Watts office for details on what is and is not covered).

This means there is no need to put them through payroll, no need to include them on a P11D, and there is no Class 1A NI liability (Class 1B is paid as part of the PSA)

An application can be made online or by post and must be done by the 5 July following the first tax year it applies to.

Any tax or National Insurance due for 2023-24 under a PSA needs to be paid electronically to clear into HMRC's bank account by 22 October 2024 (19 October 2024 for payments by cheque).

Contact Us

The 6 July deadline for P11D and P11d (b) forms is approaching. We are experienced in handling the submission of P11D and P11D (b) forms and can help you with all your payroll requirements as part of a more comprehensive package of services from Haines Watts.