A P11D is a mandatory HRMC form that details expenses and benefits provided to company employees and directors.
P11Ds are filed by the employer or company and not by the employee.
Everything that is an employee benefit or ‘perk’ should be included. Examples include:
Certain routine, business-related expenses don’t need to be reported to HMRC. These are known as ‘exemptions’.
Exempt expenses and benefits include:
To qualify for an exemption, certain conditions apply, which can be found here.
Regardless of your company year end, all P11Ds must be filed by 6thJuly following the tax year in question and the Class 1A National Insurance Contributions (NICs) paid by the 22ndJuly 2019 (19thJuly if paying by cheque).
If you collect tax on employee benefits and expenses through your payroll system you do not need to complete a P11D.
If you opt to payroll your benefits and expenses you need to inform HMRC prior to the start of the tax year you wish to payroll for. This can be done online.
You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.
If you opt to payroll your benefits and expenses, you will still need to work out the appropriate NICs and complete a P11D(b).
A P11D(b) is basically a form that declares that you have sent P11D forms to HMRC and is also where you report on the Class 1A NICs due on associated expenses and benefits.
You will be required to submit a P11D(b) form if:
Penalties apply for not submitting your P11Ds on time, so it’s important that you comply. It’s always better to do these things sooner rather than later to allow sufficient time to gather the relevant information.