Guidance around P11D forms, reporting, costs and deadlines
What are P11Ds?
When an employer provides a taxable benefit (referred to as a benefit-in-kind - BIK) to an employee, the employer is required to report the benefit to HMRC via a P11D and P11D(b) form. The forms confirm the type and amount of the benefit received, giving a 'cash equivalent' value for the benefit. The cash equivalent value is then included within the employees’ personal tax return, where they will pay employment taxes on the benefit.
The employer also needs to pay Class 1A National Insurance contributions (NIC) to HMRC for providing the benefit at the relevant rate based on the same cash equivalent value.
❗ The P11D submission deadline is the 6 July with the subsequent Class 1A NIC liabilities needing to be paid by 22 July. There are significant penalties for late filing and payment.
How do I know if I have one?
In most cases this will be easily identifiable, as any items the company pays for and that the employee personally benefits from need to be included on the P11D form. The most common forms are:
- Company cars and vans with personal use
- Health and/or medical insurance
- Assets provided to an employee that have significant personal use
- Low interest or interest free director loans above £10,000.
The hardest items to identify are director loans where director/ shareholders are withdrawing too much money from their company resulting in the company having negative reserves.
❗ The obligation to report taxable benefits lies with the company director, so should you be unsure, we advise clients to update their accounting software and contact their accountant. We can then identify the amount of the loan and any subsequent requirements.
What are the next steps?
Rest assured that if the requirement to report benefits applies to your company, NASA can help. We can advise on, calculate and submit your P11D forms to HMRC in a timely manner to ensure you meet this deadline.
Our fee for completing these additional reporting obligations is £150+VAT for each P11D return.
With the deadline placed shortly after the tax year end, we require clients to confirm their need for assistance and to provide their information to their accountant by 6 June.
If your company does not provide any benefits, then there is no requirement to submit a P11D.