A P11d(b) form is completed by Employers who provide their employees with taxable benefits. Find out more about this form, the figures that need to be included and the P11d(b) submission deadline with HMRC.
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.
What is a P11d(b) Form
A P11d(b) form is completed by an Employers who provide taxable benefits in kind like a company car or private healthcare to their employees. After the tax year ends, employers must fill out P11d forms to let the employees know the value of what they have been given so they can pay income tax via self assessment. They must also complete a P11d(b) form to summarise:
- The total value of taxable benefits that have been provided to Employees during the previous tax year and;
- How much additional employers’ national insurance they need to pay on the total cash value of benefits provided.
Not all benefits are taxable. There is a full list of taxable benefits on the HMRC website.
Example P11d(b) Form
P11d(b) forms can be completed and printed on HMRC website, ready to post to HMRC. Alternatively, they can completed online, by logging into your business tax account.
Who Needs to Submit a P11d(b) Form
You need to submit a P11d(b) form if you are an employer and you’ve:
- provided taxable benefits to your employees on which you have not paid tax as the employer (whether they were paid through the payroll system or not);
- filled out P11d forms for your employees;
- HMRC has requested you to submit one (see below if you think you shouldn’t be submitting one).
Example
An employer provides 10 employees with private healthcare of £200 per month. The cash value of the benefit in kind is £2,400 (12 x £200). For the tax year 2022-23, the employer will need to pay additional class 1A national insurance of £3,312 (£2,400 x 10 employees x 13.8%). The 10 employees will each receive a P11d, showing the cash value of the private healthcare of £2,400 in Section I. of the form.
When is the P11d(b) Filing Deadline
One P11d(b) form relates to one tax year**. The deadline for filing P11d(b) form with HMRC is 6th July following the end of the tax year. So the deadline for P11d(b)s for the tax year 2022-23 would be 6th July 2023.
Employers must pay any additional national insurance by 22 July.
** the tax year runs from 6 April to 5 April
What are the Penalties for Missing the P11d Deadline?
Employers will get P11d(b) penalties of £100 for each month or part month the P11D(b) forms are late.
How to Tell HMRC a P11d(b) Form is Not Due
If HMRC have requested a P11d(b) form but one is not due, then an employer must complete a declaration to advise HMRC. Alternatively, the employer can choose to submit a nil return by entering zero into the relevant boxes.
Related:
www.goselfemployed.co – small business website with easy-to-follow guides on topics like tax, accounting and business registration for the UK self-employed and Limited Company Directors. Follow on Instagram and Tiktok for more.