Employee expenses and benefits: How to submit a P11D form

Do not be stung when rewarding employees. Avoid penalties on employee benefits by correctly submitting P11D forms.

‘Benefits in kind’ are great perks for employees and a great way for employers to show their appreciation for hard work and valuable contributions.

But these benefits are still taxable and will need to be reported to HM Revenue & Customs (HMRC) promptly to avoid penalties.

What is a P11D form?

A P11D form is designed to inform HMRC of any taxable benefits that have been given to directors or employees.

P11D forms need to be submitted by employers to HMRC yearly and will include items or services such as expense payments, company cars, and private healthcare.

Your P11D form must be filed by 6 July for the previous tax year, and any taxes must be paid by 22 July.

What information do I have to enter in a P11D form?

Aside from the usual employee information you would expect on a Government form such as their name, date of birth, and National Insurance number etc, a P11D form requires complete data on any of the below:

• Expenses
• Loans
• Cars
• Private medical treatment or insurance

Please note that when expenses and benefits are processed through your payroll, a P11D form is not required.

What penalties can I incur for late submission of a P11D form?

Employers can receive a fine of £100 per 50 employees for each month or part month that the P11D form is late.

Further penalties can be incurred as time passes beyond the deadline of 6 July.

There are also penalties if forms are not filled out correctly, and they can be more severe the more the errors look to have ‘concealed’ information rather than being careless, so everything must be checked thoroughly before filing the form.

Are there any changes to filing P11D forms in the future?

As part of the Government’s Making Tax Digital (MTD) program, P11D forms will be required to be submitted and amended online only, starting from the 2023/24 tax year. This means that any P11D forms that must be filed by 6 July 2023 must be done online.

You can submit P11D forms via HMRC’s PAYE online service, their Online End of Year Expenses and Benefits service, or through a commercial payroll software.

For any help with employee expenses and benefits and filing a P11D form, please contact us today.