Employers guide to P11D’s and recent changes by HMRC
Employers Guide to P11D Submissions
A P11D is a statutory tax form that is used to report to HMRC the ‘benefits in kind’ that employees or Directors receive from their employer.
Your employer should submit the P11D each tax year to HMRC directly and should give you a copy for your records. The P11D gives HMRC the details they need to update an employee’s PAYE record with the type and value of any company benefits received during the tax year.
A ‘benefit in kind’ is essentially an added extra or expense or perk which is separate from employees’ salary or wages. The most common example of these are things like a company car or private healthcare cover.
A P11D (b) is used to declare the amounts of Class 1A National Insurance contributions an employer is due to pay for the year, based on the value of certain benefits reported on the individual P11Ds.
What is the latest date the employer can file the P11D with HMRC?
An employer has a legal obligation to report any expenses and benefits to HMRC at the end of the tax year. The P11D must be filed by 6 July for the previous tax year, and any taxes must be paid by 22 July. The P11D deadline for the 2022-23 tax year is 6 July 2023 and the payment deadline is 22 July 2023.
What company benefits are classed as P11D expenses?
A number of benefits can be classed as a P11D expense, the most common of which is a company car, van or private health care.
The latest P11D has 14 classifications for your expenses as follows:
- Section A: Assets Transferred
- Section B: Payments made on behalf of the employee
- Section C: Credit Cards and vouchers
- Section D: Living Accommodation
- Section E: Mileage Allowances
- Section F: Cars and car fuel
- Section G: Company Vans
- Section H: Beneficial Loans
- Section I: Medical Health
- Section J: Qualifying Relocation Payments
- Section K: Services Supplied
- Section L: Assets placed at employee’s disposal
- Section M: Other Items
- Section N: Expenses Payment
Updates:
Importantly from April 6th, 2023 employers will no longer be able to submit paper versions of their P11D or P11D (b) for the 2022 / 2023 tax year. It was announced in the HMRC’s February employer bulletin that all P11D’s and P11D (b) will need to be submitted va the PAYE online service or commercial payroll software.
The PAYE online service can be used if you have up to 500 P11D and P11D (b) returns to complete.
Paper forms sent to HMRC on or after April 6th 2023 will be rejected as they will not be in the prescribed format. HMRC will advise you of the correct method to submit them but this will lead to delays.
Paper copies can still be submitted to employees.
If you have any questions or queries about preparing and submitting your P11D get in contact with the team who will be able to assist you CONTACT US
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
