In this guide, we will look at what a P11D is and tell you everything you need to know, from who needs to file one to what information needs to be included.
What is a P11D?
A P11D is a tax form used to report items or services that you or your employees receive from your company. These are known as benefits in kind. Some examples of benefits in kind include:
- Private Healthcare
- Company cars
- Non-Business travel/entertainment expenses
- Interest-free loans
- Gym Memberships
When should you file your P11D?
P11Ds are filed by the employer not the employee and should be filed by 6TH July following the tax year in question. For example, for the tax year 6th April 2020 – 5th April 2021, your P11D would need to be filed by 6th July 2021.
What happens if you do not file a P11D?
HMRC will give you a fine if you file late or file incorrectly. If you miss the deadline, you will not incur a fine straightway, but you should aim to file this as soon as possible. HMRC will fine your company £100 per month per 50 employees.
What should be included on your P11D?
Information that should be included on your P11D for each employee includes:
- The name of the employee
- Date of birth & gender
- National insurance number
- Payroll reference number
- Prices for products/services provided
- The total cash equivalent to the value of the goods provided
How to file a P11D
P11Ds can be filed electronically to HMRC and can be done through most payroll software’s. You can find out more about filing P11D on gov.uk.
How does a P11D affect your tax code?
A P11D can alter your tax code due to you needing to pay additional tax on the benefit. Altering your tax code will reduce your tax-free allowance to compensate for any tax owed.
What is a P11D(b)?
A P11D(b) is a form employer must submit summarising the individual P11D forms they have completed for their employees.
Help with your P11D
If you need help with your P11D we would be happy to help. Please get in contact with us for more information.