Definition
A form that employers must submit to HMRC detailing the value of taxable benefits and expenses provided to employees during the tax year. Common benefits include company cars, private medical insurance, gym memberships, and interest-free loans above 10,000 pounds.
UK Context
P11D forms must be submitted to HMRC by 6 July following the end of the tax year (5 April). Employers also pay Class 1A National Insurance on most benefits, due by 22 July. Since 2016, employers can register to payroll benefits in kind, which eliminates the need to submit P11D forms for those benefits.
Best Practices
- Consider registering to payroll benefits in kind to simplify administration and eliminate the need for P11D forms
- Keep accurate records of all benefits and expenses provided to employees throughout the year
- Provide employees with a copy of their P11D information by the same 6 July deadline
Frequently Asked Questions
What benefits must be reported on a P11D?
Common reportable benefits include company cars and fuel, private medical insurance, accommodation, travel and subsistence expenses not covered by approved rates, loans above 10,000 pounds at below-market interest rates, and gym memberships. Trivial benefits worth 50 pounds or less are generally exempt.
What is payrolling benefits in kind?
Since April 2016, employers can register with HMRC to payroll benefits in kind. This means the tax on benefits is collected through the payroll each month, eliminating the need to submit P11D forms for those benefits. Employers still need to report Class 1A NIC.