Employers and employees must act quickly to ensure the completion of the P11D and P11D(B) forms before the deadline of 6 July following the end of the tax year.
Be aware that if an employer fails to submit the P11D(B) on time, they will receive a £100 penalty per 50 employees per month.
What is a P11D form?
A P11D form is a statutory UK tax form used by employers to report any benefits in kind provided to employees or directors.
Benefits in kind are perks or expenses provided outside of salary that are not wholly and exclusively necessary for the performance of the job, such as company cars, gym memberships or private health insurance.
These benefits are subject to tax and must be declared so that HMRC can calculate the Class 1A National Insurance contributions owed by the employer. The P11D(B) form then summarises all individual P11D forms submitted, confirming the total amount of Class 1A NICs due.
What details does the P11D need?
When submitting a P11D form, all benefits and taxable expenses provided during the previous tax year must be reported. HMRC requires employers to include:
- Employee name, address and National Insurance number
- A description of each benefit provided
- The cash equivalent or value of each benefit in line with HMRC guidance
- The cost to the company and any amount made good by the employee
- Any salary sacrifice arrangements that affect the taxable value
It is worth noting that allowable business expenses, such as costs incurred for genuine business travel, do not need to be listed.
It is good practice, however, to retain records in case HMRC requests supporting evidence.
Remember, the deadline for submission is 6 July.
Who needs to file a P11D form?
It is the employer’s responsibility to complete and submit the P11D form. A separate form is required for each employee who has received benefits in kind during the tax year.
If an employee has received no benefits in kind, no P11D is required for that individual.
If you are already collecting tax on benefits through payroll, you will not need to submit a P11D. Instead, you must register the benefits through the HMRC online service so that HMRC is aware that the tax is being collected through payroll.
Payrolling benefits in kind: what’s changing from April 2026
From April 2027, payrolling benefits in kind will become mandatory for most employers.
Currently an optional arrangement, payrolling means the taxable value of benefits is reported and taxed through the payroll in real time rather than declared after the year-end via a P11D.
Under the new rules, employers will need to register to payroll benefits in kind and report them to HMRC through the payroll each pay period.
The P11D will no longer be required for benefits that are payrolled, though the P11D(B) will still be needed to declare and pay any Class 1A National Insurance contributions due.
There are a small number of exemptions, including employer-provided living accommodation and interest-free or low-interest loans, which cannot currently be payrolled and will continue to require a P11D.
For employers who have not yet considered the practical implications, now is the time to act. Changes to payroll software and processes, employee communications and benefit valuations will all need to be in place ahead of the start date.
Businesses that leave preparations late risk compliance issues from the outset of the new regime.
How we can help
Understanding your P11D obligations and preparing for the shift to mandatory payrolling can be complex, particularly where a workforce has a varied mix of benefits. Speaking to a professional is the best way to ensure accuracy and full compliance with HMRC.
Our team is here to help you meet the 6 July deadline for this year’s P11D and P11D(B) submissions, and to prepare your payroll processes for the changes coming in April 2027.
Get in touch today for tailored advice.
