P11D – Expenses and Benefits

What is a P11D?

A P11D is a form employers must submit to HMRC each year for every employee (including directors) who received taxable expenses or benefits that weren’t put through the payroll.

These benefits may include but are not limited to:

– Company cars or vans
– Private medical insurance
– Interest-free or low-interest loans
– Season ticket loans
– Relocation expenses
– Vouchers or credit cards

Employees should also be given a copy of their P11D for use with their self-assessment tax return (if applicable).

What is a P11D(b)?

You must submit a P11D(b) if:

– You’ve submitted any P11D forms
– You’ve payrolled certain benefits
– HMRC has asked you to submit one

The P11D(b) tells HMRC how much Class 1A National Insurance is due on the benefits you’ve provided. Even if no benefits were given, you may need to submit a declaration to confirm this.

Payrolling Benefits in Kind (BiKs)

Current rules (as of 2025):

Employers can choose to payroll most benefits instead of reporting them on a P11D—but only if they register with HMRC before the start of the tax year via the Payrolling Benefits in Kind (PBIK) service.

Some benefits cannot currently be payrolled and must still go on a P11D. These include:

– Living accommodation
– Interest-free or low-interest loans

Class 1A NICs are still due on most benefits, even if payrolled. Employers must calculate and pay this annually—typically by 6 July after the tax year ends.

Coming Soon: Mandatory Payrolling (April 2027)

From April 2027, HMRC will make payrolling of most BiKs compulsory:

– Most benefits will be reported in real time using the Full Payment Submission (FPS) via RTI
– The P11D form will be phased out for most employers
– Class 1A NICs will also be reported and paid in real time

We’ll ensure you’re fully prepared for this change.

Common P11D Errors and How to Avoid Them

P11D errors are surprisingly common, and they can result in penalties, employee confusion, and unnecessary HMRC queries. Here are the most frequent mistakes we see—and how to avoid them.

Missing a Reportable Benefit

Some employers forget to report benefits not processed through payroll. Examples include Gym memberships, Mobile phones for personal use.

Reporting Incorrect Values

Incorrect calculations—especially for car benefits or medical policies—are a leading cause of HMRC queries.
Omitting Directors or Family Members

It’s easy to forget directors or family members on the payroll who receive benefits—but HMRC won’t.

Late Filing

P11Ds must be submitted by 6 July following the tax year. Late submissions can result in automatic penalties.
Incorrect Class 1A NIC Calculations

Getting the Class 1A National Insurance wrong can lead to underpayments and further penalties.

Incorrect Employee Details

Misspelt names, wrong National Insurance numbers, or old addresses can delay or invalidate P11D forms.