Reporting P11D and Its about Benefits in Kind

Reporting P11D and Its about Benefits in Kind

You might give a wide range of employee benefits outside of the salary and those benefits in kind could be subject to reporting to HM Revenue and Customs. In this article, we have a closer look at the P11D form; a note on the P11D, benefits that included on the P11D form, the compliance on this and how The Stan Lee can help your business.

What is the P11D?

The P11D form is used when reporting the benefits in kind to HMRC and this is once in a year for those companies that providing the taxable benefits to their employees. The employer pays the Class A1 NI contributions to HMRC, and you have additional taxable income as an employee (effectively increase your salary).  

Which benefits included in the P11D?

A wide variety of employee benefits need to be on the P11D form that the company gives to their employees and some of them are:

  • Cars and car fuel
  • Living accommodation
  • Cheap or interest free loans to the directors or employees (£10,000 or more)
  • Private health and medical insurance
  • Travel and entertainment expenses for non-business purposes

However, the business travel, business entertainment, fees and subscriptions are exempted from the benefits in kind and no reporting on P11D.

Compliance requirements about the P11D

The P11D should be submitted annually with the amount of Class 1A NICs payable on form P11D(b) on or before 6 July following the end of the tax year. At the same deadline, the P11D copy should be distributed to the relevant employees. The NICs (Class 1A) on expenses or benefits must be paid by 22 July (19 July if pay by cheque). Failure to comply with the P11D, you could get penalty of £100 monthly per 50 employees.

However, you will not have to submit the P11D if you pay any PAYE tax or Class 1 NI owed on expenses or benefits on payroll system. Instead, you must register with HMRC using the “payrolling employees taxable benefits and expense service”.

How can The Stan Lee help?

At The Stan Lee, we offer P11D preparation and submission to HM Revenue Customs with employee benefits related other ad hoc services at reasonable fees so that you have one step less stress about the P11D compliance.

For further information, any questions or concerns and advice about the P11D, please call one of the team here at The Stan Lee and let’s find out how we can help.