Year-end P11D forms – what employers need to know

05/05/2021

All employers who provide their employees or directors with benefits in kind are required to report these annually to HMRC on forms P11D.

The P11D is used to report benefits provided to employees and expense payments by employers that are not included in the payroll process.

To complete this, you will need to know what you need to report. To help you decipher what is a taxable and what is a non-taxable benefit we have put together a helpful guide which can be viewed by clicking here.

Annual Return of Expenses and Benefits-in-kind (Forms P11D)

If you have provided any benefits or reimbursed any non-business expenses, then you must complete a P11D for each relevant employee or company director, as well as a Form P11D(b) for the company. You will only be able to accurately calculate the Class 1A National Insurance contributions (NICs) due on these benefits once the forms are complete.

Forms P11D and P11D(b) must be submitted to HMRC by 6th July 2021 and any Class 1A National Insurance due must be paid by 19th July (or 22nd July if you pay electronically). HMRC will charge you penalties if you miss this deadline or submit incorrect or incomplete forms.

Voluntary payrolling of benefits

Employers can choose to process benefits in kind through the payroll, which means that tax is accounted for in real-time, throughout the year. Although P11D reporting is reduced, it is still necessary to prepare a P11D(b) form to account for the Class 1A National Insurance contributions that arise from these benefits.

The types of benefits suitable for payrolling include company cars, private medical, taxable subscriptions, and taxable fuel benefits. If you also provide any non-payrolled benefits, you will still have to report these on a P11D form for every relevant employee or director.

If you are considering registering to voluntarily payroll benefits, you will need to register before the start of the next tax year.

For our clients, if we have either previously completed and filed these forms for you or been informed during the year that benefits reporting may be applicable for your company, we have written to you directly.

If you think you need to file these forms and haven’t heard from us, or if you have any questions regarding forms P11Ds please get in touch.