Home Insights Your guide to the P11D form

Your guide to the P11D form

By Chrissie Turnbull
19th May 2023

P11Ds are forms which employers must submit to HMRC each tax year to report the value of reportable benefits they have provided to employees and directors, where the benefits are not covered by a formal payrolling arrangement with HMRC or are not dealt with under a PAYE Settlement Agreement (‘PSA’). This article covers some of the important points you need to consider.

Who needs to complete a P11D form? Employers need to file a P11D form for any employees and directors in receipt of benefits in kind.

What is a P11D benefit? Benefits in kind are goods and services provided to an employee for free or at greatly reduced costs. These include items such as company cars and their associated fuel benefit, vans available for private use, health insurance, living accommodation, interest-free loans and many more.

What is exempt? You do not have to report certain business expenses and benefits such as business travel, phone bills and specific tools for work.

When is the P11D deadline? Forms P11D and P11D(b) for the year ended 5 April 2023 need to be submitted by 6 July 2023 to avoid penalties.  The Class 1A National Insurance is payable by 22 July 2023 (19 July 2023 if paying by cheque). From 6 April 2023, the forms can only be submitted online.

What are the penalties? The P11D(b) late filing penalties kick in as soon as you miss the deadline. You’ll get a penalty of £100 per 50 employees for each month or part month your P11D(b) is late and you could also be charged penalties and interest if you’re late paying HMRC.

How to Submit a P11D?  There are two ways in which you can report benefits in kind to HMRC. Option one is that you file P11D online using the PAYE online services. Option two is that your report the benefits using payroll software in the year they are received.

How long should the records be kept? You’ll need to keep copies of benefit-related records for three years from the end of the tax year they are for. These records should include the date and details or every benefit, and how you’ve calculated the amounts.

Specialist advice should always be sought prior to taking any action on matters discussed in this article.