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What is a P11D?

What is a P11D?

P11Ds are used by employers who need to report end of-year expenses and benefits-in-kind for employees and directors.

Benefits-in-kind are items or services which employees receive from a company as an addition to their salary, such as private medical healthcare, interest-free loans (to pay for expensive one off items such as a season travel pass) and company cars. 

The annual P11D form allows you to report these items to HMRC on your annual Self Assessment return.

As benefits-in-kind effectively offer an increase to the salary, there may be National Insurance contributions (NICs) to be paid on them, although it’s important to note these contributions will be paid by the company, not the individual.

Who needs to file a P11D?

The employer! It’s important to remember that P11Ds are filed by the employer and not the employee – however for many freelancers and contractors, they will need to file their own.

When do P11Ds need to be filed?

P11D filings aren’t dependent on your company year, and must all be filed by 6th July following the tax year in question. So, your P11D for the tax year running 6th April 2018 to 5th April 2019 must be filed by 6th July 2019. Any tax due must be paid to HMRC by the 22nd July each year.

What has to be included in a P11D?

In the simplest terms, any items employees benefit from which are paid by the company need to be included on the form. This includes:

  • Company cars
  • Loans for season travel tickets/Other loans
  • Health insurance
  • Assets provided to an employee that have significant personal use
  • Self Assessment fees paid by the company
  • Non-business travel expenses
  • Non-business entertainment expenses

P11D exemptions for certain business expenses

The exemption system means the majority of business expenses incurred personally by company employees no longer need to be recorded on a P11D form. Exempt expenses include:

  • Business Travel
  • Business entertainment expenses
  • Credit cards used for business purposes
  • Fees and subscriptions.
  • Business Expenses 

P11D penalties for late filing

If you miss the deadline of 6th July, you won’t incur penalties straight away- you will have around a two week ‘cooling off period’ to correct things. If 19th July arrives and the P11D is still yet to be submitted, your company will incur fines of £100 per month per 50 employees.

If you still have not filed by November, HMRC will send you a reminder plus details of all the penalty costs you have incurred along the way. 

What if the P11D is incorrect?

If your P11D is incorrect you could face fines, but only if HMRC believes you deserve them. If it was inccorect due to a genuine error and HMRC believe you took reasonable care before filing, you may not face any fines. 

However, penalties of 30%, 70% or 100% of the owed tax can be applied if HMRC believes you acted carelessly, deliberately misled them or attempted to conceal your true liabilities.

For more information about P11Ds please get in touch with our team on mail@moco.co.uk or call 0151 348 8400. 

All content provided on this blog is for informational purposes only. We make no representations as to the accuracy or completeness of any information in this blog and each individual's circumstances should be taken into consideration with regards to the information included.