What is a P11D form

P11D

The P11D is a form UK employers must submit to the HMRC detailing the cash equivalents of benefits and expenses that they have paid to employees during the tax year.

When is a P11D required?

A P11D is required when benefits or expenses payments have been made to an employee or director who has earned £8,500 or more in the preceding year. And to each director who has earned less than this amount, unless they are a full-time working director with no material interest in the company or a director of a charity or non-profit making organisation.

What sort of expenses and benefits are included?

• Company cars.
• Company car mileage allowances and fuel.
• Company vans provided for private use.
• Private car mileage allowances and fuel.
• Motorcycles provided for private use.
• Payments for use of home telephones.
• Mobile telephone usage and reimbursements. *
• Private medical insurance. Subscriptions and professional fees. *
• Non credit card expenses payments.
• Credit card expenses payments.
• Living accommodation. *
• Interest-free and low interest loans.
• Assets transferred. *
• Assets placed at the employee’s disposal.
• Working from home.
• Employer supported childcare. *
• Other benefits or expenses such as childcare costs, spouse or partner expenses on business trips, late night taxis and so on.

P11D DEADLINE

The forms P11D are due for submission to HMRC by 6 July 2018. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.

Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system. Significant changes were introduced to the rules for reporting expenses from 6 April 2016.

Some employers ‘payroll’ benefits and in this case the benefits do not need to be reported on forms P11D but employers should advise employees of the amount of benefits payrolled.

In addition, regardless of whether the benefits are being reported via P11D or payrolled the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July (or 22nd for cleared electronic payment).

Help with P11D forms

HMRC produce an expenses and benefits toolkit. The toolkit consists of a checklist, which may be used by advisers or employers to check they are completing the forms correctly.

If you would like any help with the completion of the forms or the calculation of the associated Class 1A NIC you can contact https://www.deball.co.uk/.

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