The P11D form is one of the most important forms that UK employers need to complete each year. This form reports all employee benefits and expenses for the year, and it is used to calculate how much tax employees will need to pay.
We will answer all of your questions about who needs to complete a P11D, what needs to be included on the form, and when the deadline is for submitting it. We will also discuss some common mistakes that employers often make when completing this form.
What is the P11D?
The P11D form is an important part of the annual tax return for UK employers. This form reports employee benefits and expenses for the year, and is used to calculate how much tax will be due. It must be filed with HM Revenue & Customs (HMRC) by 6 July following the end of the tax year.
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|What is the P11D(b)?|
|The P11D(b) is a related form that must be filed along with the P11D. This form reports the total value of all benefits and expenses reported on the P11D forms for all employees. The P11D(b) is used to calculate the employer’s Class I National Insurance liability.|
Who needs to complete a P11D?
All UK employers must complete a P11D form for each employee who received benefits or expenses during the tax year. This includes company cars, private medical insurance, and other benefits. If an employer does not have any employees with benefits or expenses, then they do not need to file a P11D.
What is included?
Employers will need to provide information on all employee benefits and expenses for the year. This includes items such as company cars, private medical insurance, and relocation expenses. Employers will also need to report any salary sacrifice arrangements that are in place for employees.
The following employee benefits should also be included:
- Taxable benefits
- Company car details
- Private medical insurance information
- Pension contributions
- Childcare vouchers
- Other taxable allowances
When completing the form, employers will need to provide information on each employee’s name, National Insurance number, and the amount of the benefit or expense. If an expense is being reported, employers will also need to provide details on how it was incurred (e.g., business travel).
Submitting the P11D to HMRC
Once the form is completed, employers will need to send it to HMRC along with a copy of their annual accounts and a P60 form for each employee. Employees will also need to be given a copy of their P11D so that they can check the accuracy of the information.
The form must be submitted electronically to HMRC. Employers can do this through the Government Gateway website.
P11D deadlines and key dates
- 6 July following the end of the tax year: Submit your P11D forms online to HMRC
- 6 July: Give your employees a copy of the information on your forms
- 6 July: Tell HMRC the total amount of Class 1A National Insurance you owe on form P11D(b)
- Must reach HMRC by 22 July (19 July if you pay by cheque): Pay any Class 1A National Insurance owed on expenses or benefits
- Must reach HMRC by 22 October (19 October if you pay by cheque): If you have a PAYE Settlement Agreement pay tax and Class 1B National Insurance
- Pay monthly through payroll: Pay any PAYE tax or Class 1 National Insurance owed on expenses or benefits
Health insurance and P11D
If you provide health insurance for your employees, this needs to be included on the P11D form. The cost of the insurance premiums can be deducted from an employee’s salary before tax, and this will reduce the amount of tax that they need to pay.
To include health insurance on the form, you will need to provide information on the insurer, the policy number, and the amount of the premium. You will also need to include this information on each employee’s P60 form.
Is gym membership a P11D benefit?
No, gym membership is not a P11D benefit. This is because it is not a taxable benefit. Gym memberships can, however, be included in salary sacrifice arrangements. This means that the cost of the membership can be deducted from an employee’s salary before tax, and this will reduce the amount of tax that they need to pay.
HMRC penalties for late or incorrect filings
If you fail to file the P11D on time, or if you make errors on the form, HMRC can issue penalties. The amount of the penalty will depend on the severity of the mistake and whether it was deliberate.
In most cases, HMRC will charge a penalty of £100 for each late or incorrect form. If you have multiple employees, this can add up to a significant amount of money. If you are found to have deliberately withheld information or made false statements on the form, HMRC can charge a much higher penalty.
|Remember: The P11D is a legal document|
|It is important to remember that the P11D is a legal document, and it is your responsibility as an employer to make sure that it is completed accurately and filed on time. If you are unsure about anything, we recommend seeking professional help from an accountant or tax advisor.|
Hiring an accountant to help with your P11D
If you are unsure about how to complete the P11D form, or if you don’t have the time to do it yourself, you can hire an accountant to help. An accountant will be able to advise you on the best way to report employee benefits and expenses, and they will also be able to help you file the form correctly.
While hiring an accountant to help with your P11D can be a good idea, it is important to remember that you are ultimately responsible for the accuracy of the information on the form.
How much does it cost to pay an accountant for P11D help?
The cost of hiring an accountant to help will vary depending on the size of your business and the number of employees you have. In most cases, you can expect to pay a few hundred pounds for this service.
While the cost of hiring an accountant may seem like a lot, it is important to remember that the penalties for filing a late or incorrect form can be much higher. In some cases, the cost of hiring an accountant will actually be less than the amount you would have to pay in penalties.
Amending a P11D after it has been filed
If you need to make changes after the form has been filed, you can do so by sending a letter to HMRC. In the letter, you will need to explain why the changes are being made and provide supporting documentation.
It is important to remember that amending a P11D can be a complex process, and it is best to seek professional help from an accountant or tax advisor if you are unsure about anything.
Top 10 most common mistakes made
When it comes to the P11D form, even small mistakes can lead to big problems. Here are the top ten most common mistakes made:
- Forgetting to file the form altogether
- Filing the form late
- Not including all relevant information
- Incorrect reporting of employee benefits and expenses
- Failing to provide supporting documentation
- Not sending the form to HMRC
- Not keeping copies of the form
- Not sending copies of the form to employees
- Incorrect calculation of employee taxes
- Not hiring an accountant or tax advisor to help
Avoiding these mistakes will help to ensure that your P11D is filed correctly and on time, and that you don’t end up with any unwanted penalties from HMRC. If you are unsure about anything, we recommend seeking professional help.
Frequently asked questions
The P11D form is an important part of the annual tax return for UK employers. This form reports employee benefits and expenses for the year, and is used to calculate how much tax will be due.
The deadline for filing a P11D is 6 July following the end of the tax year.
Yes, you are required to send a copy of the P11D to your employees by 6 July.
If you don’t file a P11D, HMRC can charge you a late filing penalty. In some cases, the penalty can be as much as £100 per employee.
Yes, you can make changes to a P11D after it has been filed by sending a letter to HMRC. However, it is best to seek professional help from an accountant or tax advisor if you are unsure about anything.