A P11d form is the form used by an Employer to let HMRC know about any expenses, benefits or perks they have paid for on behalf of their Employees, which both the employer and the employee may need to pay tax on.
What is a P11D Form
A P11d form looks like this, with 14 sections available for an Employer to fill out so they can tell HMRC about any benefits they have given to their employees. Here are some typical benefits that an Employer may offer and need to disclose on a P11d form:
- Private Healthcare;
- an Interest Free loan for a train season ticket;
- Gym membership;
- a Company Car or Van for business and private use;
- Fuel Card;
- Mileage Allowance.
There is a full list of taxable benefits here on the HMRC website.
An Employer needs to fill out a P11d form for each Employee that receives a benefit, giving a copy to the Employee and well as sending one to HMRC. In addition, the Employer will need to complete a P11d(b) form for themselves, which summarises the amount of national insurance they need to pay for providing benefits to their employees. This can be completed online here.
What are the 14 Sections on a P11d Form
HMRC have designed the P11d form to contain 14 sections, for clarity. These 14 sections are:
Section A – Assets transferred
Section B – Payments made on behalf of the employee
Section C – Credit cards and vouchers
Section D – Living Accommodation
Section E – Mileage allowance
Section F – Cars and fuel
Section G – Company vans
Section H – Beneficial loans
Section I – Private Medical Healthcare
Section J – Qualifying Relocation payments
Section K – Services supplied
Section L – Assets placed at employee’s disposal
Section M – Other items
Section N – Expenses payments
Who needs to complete a P11D form?
A P11D form must be completed for Company Directors or Employees who earn over £8,500 per year. The P11D forms are completed by the Company, not the Employee – however if you run a small business you may find yourself needing to fill out both the P11d and P11d(b) forms.
Tax and National Insurance on P11d Benefits
An Employee pays income tax on their P11d benefits and the Employer pays Class 1a National Insurance on any P11d benefits it provides.
The amount of additional tax an employee will pay will depend on the amount that they earn in total during a tax year (6 April to 5 April).
Is there a deadline for Submitting the P11D Form?
Yes, P11D forms must be filed by July 6th following the end of the tax year. For example, a P11D form for the tax year 2017/2018 needs to be filed by July 6th 2018 and any additional tax due should be paid by the 22nd July, if paying electronically (19th July if paying by cheque).
What are the Penalties for Missing the P11d Deadline?
Employers will get a penalty of £100 per 50 employees for each month or part month your P11d or P11D(b) forms are late. You’ll also be charged penalties and interest if you’re late paying HMRC.