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Contents

  1. 1. What is a P11D form?
  2. 2. What employee benefits are included in a P11D form?
  3. 3. When should I file a P11D form?
  4. 4. What if I make a mistake on the form?

What is a P11D form?

August 16, 2021
Whether you run your own small business or file your own taxes, it can feel like there's a mountain of paperwork to deal with – and sometimes the names of these forms don't give us much of a clue as to what they're about.A P11D is just one of many tax forms that employers, employees, freelancers and contractors will come up against from time to time. If you've never filled one in before, then you might not be sure where to begin.If that's the case for you, you've come to the right place. In this article, we'll break down everything you need to know about the P11D form, from what it is, who needs to fill it out, the information to include and how it affects the tax you pay.

What is a P11D form?

A P11D form details the employment benefits you or an employee have gained through the company, such as healthcare or a company car. These are benefits that have been received in addition to someone's salary, and they are also known as benefits in kind. This form is sent to HM Revenue and Customs (HMRC) and shows the cash value of these benefits.The tax due from these company benefits is then collected via the employee's tax code. Alternatively, the information is provided in a Self Assessment form if that is how the person receiving these benefits pays their taxes.

Do I need to fill in a P11D form?

As an employer, you'll need to fill out the form if you meet the following criteria:
    You earn at least £8,500 in the tax yearYou received taxable expenses or benefits in kind during the tax year
<When giving your employee a P11D form, you'll also need to give your employee a copy of their expenses, which can be used if they need to fill out a Self Assessment tax return for other reasons.

If you're a self-employed worker and meet the above criteria, you'll need to make sure you fill out the form for yourself.

What employee benefits are included in a P11D form?

The employee benefits to include in a P11D form include:
    Loans for train season ticketsCompany cars and company vansChildcare vouchersDental and health insuranceSubscriptions to professional bodiesWork training reimbursed by the companyLiving accommodationLow and interest-free loans or "director's loans"Mobile phones (unless the contract is in the company name)Gym memberships
These are all benefits where the company has provided assets for the employee's private use. When these are recorded on the P11D form, you'll be shown a cash equivalent, which you can list as a taxable expense.

Do I need to report every expense?

If you're not too keen in filing more paperwork, you can make a one-off payment called a PAYE Settlement Agreement to cover the tax and National Insurance payments due on minor company expenses and employee benefits.

When should I file a P11D form?

Regardless of whether you're filing digitally or on paper, the deadline for filing the P11D form is the 6th July.
If you have to pay Class 1A National Insurance, the deadline for paying this is the 22nd July if you're paying digitally. If you're paying by cheque, the deadline falls on the 19th July.

What if I miss the deadline?

If you miss the deadline, you'll have 2 weeks grace to file the P11D form, which should give you plenty of time to get things in order. However, if you exceed these 2 weeks, HMRC can fine you up to £100 per month per 50 employees – ouch.

What information is included in a P11D form?

As well as listing all the benefits in kind and taxable expenses, you'll need to include your employee's information, such as their:
There's also a box to check, which tells HMRC whether the employee is a director or not.
You'll then need to add some information about yourself, including your name and your ERN, otherwise known as your PAYE reference number.

Most of the benefits listed on the form are quick and straightforward to fill in, but others require some extra information. For instance, if your employee has a company car, you'll need to detail the car type, CO2 emissions and any contributions made by the employee for the use of the vehicle.Benefits marked with a brown 1A box are benefits to pay Class 1A National Insurance contributions (NICs) on.

What if I file a Self Assessment form?

If you file a Self Assessment form, you'll need to fill in the relevant information from the P11D form and report these items to HMRC. If you don't do this, you may pay the wrong amount of tax for that year.

Can I get a copy of my P11D form?

What if I make a mistake on the form?

Ideally, you'll have the time and capacity to thoroughly check any tax form before you send it off to the HMRC, as mistakes on these forms can be a pain to fix. That said, sometimes things don't always go according to plan.If you make a genuine mistake on a P11D form, you may be able to avoid a fine from HMRC. However, if it looks like you were careless or tried to mislead the taxman, then be prepared to receive some penalties.You should also watch out for mistakes that could cause you to overpay tax. For example, if you're no longer receiving a particular benefit but include it on the form by mistake, or if your benefits have reduced or ended but there's been no change in your tax code, you could be paying more tax than you owe. You can get your money back through a tax rebate – but no one wants to do more paperwork than they have to.To save you the hassle of filing even more paperwork – and to minimise the risk of making a mistake on your P11D form – Ember's payroll software has you covered. Not only can we generate P11Ds, P45s and P60s for you, but we'll also automate your business admin for you – giving you more time to focus on running your business.
Daniel Hogan
Daniel HoganCOO & Co-Founder

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