Each year, some employees receive perks from their employer, such as a company car, private health insurance or interest-free loans. These include things other than salary. The UK tax service, HMRC, should be aware of them so that they can verify taxes. That’s where the P11D form comes in.
The P11D form HMRC is the form used by an employer to report on benefits and expenses which have not been taxed during payroll.
What is a P11d Form HMRC?
The form is also referred to as the HMRC P11D form or the HMRC form p11d.
Imagine you have a job and your boss provides you with a car to use or pays you for a gym membership. Even though you didn’t receive a bonus, you got something valuable. HMRC wants to know how much it is worth.
The P11D form: How to Fill Out and Submit a P11D to HMRC
It is important to ensure that a P11D form for HMRC is filled correctly to avoid penalties and errors. Follow these simple steps:
Step 1: Collect all Benefits and Expenses.
Gather all available and precise information – dates, benefits, and employee contributions.
Step 2: Complete the Form via the Web or via Payroll Software.
Use the online tools or the approved payroll software of HMRC.
Every type of benefit has its section, e.g. cars, accommodation and loans.
Step 3: Determine Class 1A National Insurance.
Calculate Class 1A National Insurance (NI) that applies to all taxable benefits.
This is noted on the P11D(b) form separately.
Step 4: Electronically Submit Forms.
File both P11D and P11D (b) online through the PAYE online tax service or payroll software of HMRC.
Paper submissions are no longer accepted by HMRC.
Step 5: Issue a copy to Employees.
A copy of the P11D form should be provided to each employee to whom benefits are paid.
It allows them to check their tax information and fill in their self-assessment when necessary.
Step 6: Pay National Insurance Due.
Employers are required to pay Class 1A NI in due time.
Electronic payment deadline: 22 July.
Cheque receipt deadline: 19 July.
Step 7: Correct where necessary.
In case of any errors during the later stages, employers may file a P11D online via HMRC.
Why Does HMRC Need the P11D Form?
HMRC uses the P11D form to:
- Make sure the tax is fair: Benefits should be taxed in the same way as salary.
- Determine National Insurance (NI): Employers are also liable for Class 1A National Insurance on benefits. This information is summarised on a form P11D(b).
- Help employees in completing their tax returns: If an employee has to file a self-assessment return, the information provided in P11D can be used to complete the return.
Who Must Use It and When
Any employer who provides benefits to employees or company directors will need to submit a P11D form for each individual who received those benefits.
- If all benefits are taxed already through payroll, a separate P11D may not be required – but the P11D(b) form is in many cases still required.
- The deadline for P11D and P11D(b) forms to be sent to HMRC is 6 July after the end of the tax year.
Important Note: HMRC no longer accepts paper P11D forms – Individuals must submit online.
What Happens After one Submit a P11D
Once submitted, HMRC will review the data and can update the employee’s tax code to include tax benefits.
- Employees can also use their P11D information when completing their self-assessment tax return if needed.
- All P11D records should be retained by the employer for at least six years in case of an inspection by HMRC.
If the form is late or it is not complete, there may be penalties.
Examples of Benefits Reported on a P11D
The common benefits to be included on the form are:
Employees provided with Company car and fuel
- Private medical insurance
- Low-interest or free loans
- The company provided accommodation.
- Subscriptions, IT hardware, vouchers, credit cards
It is important to note that not all benefits are taxable – business travel or gifts worth under a certain amount do not even need to be declared.
Common Mistakes to Avoid
- Mixing taxable and non-taxable benefits — know what must be reported.
- Missing the 6 July deadline.
- Paper forms – not accepted anymore.
- Failure to provide a copy to employees – they have a right to inspect it.
Where do I get a p11d Form to HMRC?
The P11D form HMRC can be readily accessed by the employers in two ways:
- Download from HMRC Website
The template of the official form P11D is on the HMRC site.
It is also available in the Employer PAYE Online Service.
- Use Approved Payroll Software HMRC.
P11D tools are provided in most of the modern payroll software accepted by HMRC.
These tools assist employers in computing and documenting taxable benefits automatically.
- Gather the Necessary Information.
These are the main details that person will need to collect before completing the form:
Any benefits received by the employees (e.g., company car, health insurance, loans).
Conclusion
The P11D form HMRC is not complicated – it is just a way of ensuring that workplace perks are taxed fairly. If an employer does it correctly, employees will not face any issues.
Employers should be diligent, fulfil deadlines, and maintain clean records to avoid penalties.
And if there is anyone who is not sure, it is easy to get help from our tax adviser or payroll professional who can make the process easy and stress-free.
FAQs
What is a P11D from HMRC?
A P11D is a form used by UK employers to report benefits and expenses (such as cars, medical insurance or loans) not paid through payroll. Employers have to fill it in online by 6 July per year.
What is a P11D form HMRC used for?
P11D form is used to report the benefits or expenses incurred on employees, which are not subject to payroll tax, such as company cars, medical cover or interest-free loans.
Who must complete a P11D form?
P11Ds have to be completed by each employer or director who has a taxable benefit other than his or her salary.
What is the deadline for a P11D form?
The date of filing the P11D and P11D(b) forms is 6 July, after the tax year ends.
Is it possible to send P11D forms on paper?
No. HMRC does not accept any submissions that are not done online via the PAYE Online service or via the use of approved payroll software.
What is a P11D(b) form?
It is a summary form that indicates the overall benefits offered and the Class 1A National Insurance to be paid by the employers.
What are the kinds of benefits on a P11D form?
Typical perks encompass company cars and fuel, housing, personal medical cover, low-interest loans, and gym membership.
Are all benefits to be reported on P11D?
No. Not all items, such as business travel, work devices and minor gifts (below the HMRC trivial benefits threshold do not require reporting.
What is the procedure to file a P11D form with HMRC?
It is submitted electronically by the employers through the PAYE Online system of HMRC or by approved payroll software.
Once a P11D has been completed, what occurs?
It is reviewed by HMRC and might revise the tax code of the employee to make sure they pay the appropriate tax on their benefits.
What is the penalty for late submission of P11D?
The maximum penalty imposed on the employer is 100 per 50 workers per month in case the form is not submitted on time.
Is anything required to be done with the P11D form by the employees?
Yes. Workers are advised to verify its accuracy and provide the information in their self-assessment tax return, where necessary.
Is it possible to amend an error when a P11D has been submitted?
Yes. The HMRC portal enables employers to correct any mistakes via the portal online after submission.
What is the duration of storage of P11D records?
Employers should maintain the data and documentation about P11D-related data for at least six years.
What is the difference between paying through the PAYE and P11D?
Payroll will automatically deduct PAYE taxes. The P11D includes untaxed benefits paid outside the payroll system.
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