What do I do with a P11D Expenses & Benefits form?
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and CustomsHM Revenue and CustomsWe are the UK’s tax, payments and customs authority, and we have a vital purpose: we collect the money that pays for the UK’s public services and help families and individuals with targeted financial support. We do this by being impartial and increasingly effective and efficient in our administration.
What do I do with P11D?
The P11D form is used to report benefits in kind. These are items or services which you (or your employees) receive from your company in addition to your salary, such as private healthcare, interest-free loans (to pay for train season tickets, for example) and company cars.
How do I report P11D?
You can submit the P11D form via HMRC’s PAYE online service, HMRC’s Online End of Year Expenses and Benefits service or through a commercial payroll software.
Do I need to submit a P11D if no benefits?
You will not require a copy of a P11d form as there are no benefits in kind to report. The company, however, is still obliged to confirm to HMRC that there are no benefits in kind to report and no Class 1A National Insurance to pay as part of the P11d process.
How do I report P11D to HMRC?
Reporting by post
To submit your end-of-year report by post, use forms P11D ( PDF , 156 KB, 2 pages) and P11D(b). Form P11D is a PDF, which you will need to download and complete. You’ll need to fill in form P11D(b) fully before you can print it.
What is a P11D expenses and benefits form for?
A P11D form is a document used by an employer to list any expenses or benefits given to directors or employees. It is submitted to HMRC yearly and includes items or services such as private healthcare, company cars or season ticket loans.
Do I need to send P11D to HMRC?
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs ( HMRC ) for each employee you’ve provided with expenses or benefits. You’ll also need to submit a P11D(b) form if: you’ve submitted any P11D forms. you’ve paid employees’ expenses or benefits through your payroll.
How does P11D benefit in kind work?
How is Benefit-in-Kind calculated. Benefit-in-Kind costs for a car are calculated by multiplying a car’s ‘P11D’ value (which is closely related to its list price) by its BiK rate and then by your income tax bracket (20%, 40% or 45% depending on how much you earn).
Do Payrolled benefits go on tax return?
To ‘payroll’ a benefit the ‘cash equivalent’ of that benefit should be calculated (Payroll Manager does this), and then split across the tax year as applicable. Tax is then charged on each payrolled benefit and is reported in the FPS for that period.
Does P11D benefits count as income?
When you work out your gross pay as an employee, you need to include the taxable value of certain benefits you received from your employer. Your employer will give you a P11D form which will tell you the taxable value of any benefits you received.
What tax do you pay on P11D?
To calculate annual company car tax the P11D value is multiplied by the percentage rate of income tax you pay (20% or 40%) and by the benefit-in-kind tax band dictated by the car’s carbon dioxide emissions.
When should P11D be submitted?
Deadlines
| What you need to do | Deadline |
|---|---|
| Submit your P11D forms online to HMRC | 6 July following the end of the tax year |
| Give your employees a copy of the information on your forms | 6 July |
| Tell HMRC the total amount of Class 1A National Insurance you owe on form P11D(b) | 6 July |
How do I report benefits in kind?
How do you report a benefit in kind? Benefits in kind are reported on a P11D form; as the benefit effectively increases your salary, there may be National Insurance contributions to be paid on them. It’s important to note that these contributions will be paid by the company, rather than the individual.
Who is responsible for P11D?
employers
A P11D form is sent to HMRC by UK employers outlining the cash value of any work-related taxable expenses and taxable benefits you’ve received over the tax year (6 April-5 April). These are only benefits or expenses that have not already been included in your wages.
What is the penalty for late submission of P11D?
Penalties for errors made on the P11D and P11D(b) forms, whether resulting in a loss of tax or Class 1A NICs are levied as for other Errors in returns and documents.
Unpaid tax.
| Penalty % of amount not paid | When paid |
|---|---|
| 10% | 6 months of due date (i.e. 6 January following the tax year end) |
| 15% | 12 months of due date |
What happens if you pay PAYE late?
You’ll be charged a late payment penalty if you pay less than is actually due. If you’ve still not paid a monthly or quarterly payment in full after 6 months, you’ll be charged an additional penalty of 5% of the amounts unpaid. A further penalty of 5% will be charged if you’ve not paid after 12 months.
Can HMRC check your bank account?
Currently, the answer to the question is a qualified ‘yes’. If HMRC is investigating a taxpayer, it has the power to issue a ‘third party notice’ to request information from banks and other financial institutions. It can also issue these notices to a taxpayer’s lawyers, accountants and estate agents.
How long will HMRC give me to pay?
twelve months
The HMRC website states that they will not accept payment outside of twelve months unless there are exceptional circumstances (such as COVID-19). They also refuse to negotiate the amount owed to a reduced settlement figure.