- November 16, 2023
- Posted by: Gary Parsons
- Category: Pay, Reward & Benefits
A P11D is a form that employers submit to HM Revenue & Customs on an annual basis. At the end of each tax year, a P11D should be sent to HMRC giving details of benefits and expenses your company has provided to employees and directors. Such benefits, expenses and perks are sometimes called Benefits In Kind. The form needs to give details of the cash equivalent amounts associated with each of these benefits.
When is the P11D Deadline for 2023-2024?
The deadline for filing P11D Expenses and Benefits is 6th July 2024. This is the deadline after the end of the tax year by which you as an employer need to report expenses and benefits and the total Class 1A National Insurance you owe. You also need to provide your employees with a copy of the information on 6th July, the same date.
Further related deadlines include:
- 22nd July – Pay Class 1A National Insurance (this deadline becomes 19th July if you need to pay by cheque)
- 22nd October – Pay tax and Class 1B National Insurance for PAYE settlement agreements (19th October deadline for cheques)
- Monthly through payroll – Pay PAYE tax or Class 1 National Insurance if ‘payrolling’
Preparing for the P11D deadline can be an admin heavy task for your team. If you need outsourced payroll support reach out and our friendly team can help.
P11D and staff gifts: Tax implications
When it comes to staff gifts for Christmas and other times of the year you need to be aware of these for P11D as well as tax, NI and reporting obligations.
This will depend on the rules for the specific item, and these rules also change if you are self-employed.
For ‘trivial’ gifts, classed as those that don’t exceed £50 in value there aren’t tax implications. Trivial benefits count as non-taxable if all of these apply:
- They cost less than £50
- It isn’t cash (or equivalent voucher)
- The gift isn’t related to work performance
- It doesn’t form part of their contract
Some work social functions and parties don’t need to be declared for P11D if:
- The event is open to all your employees
- It’s annual, such as a Christmas party or summer BBQ
- It costs £150 or less per person
What’s Included On The Form?
A separate form needs to be completed for each employee that has received benefits. The information you need to provide on a P11D form includes details of:
- Assets transferred to the employee, such as cars, other company vehicles or company goods
- Other assets placed at the employee’s disposal
- Payments made on behalf of the employee
- Voucher payments made to the employee, such as childcare vouchers
- Accommodation provided to the employee, and/or their family
- Car and mileage allowances paid to the employee for business travel
- Interest-free or low interest loans provided to the employee
- Private medical treatment or insurance provided to the employee
- Relocation expenses payments and benefits paid to the employee
- Services provided to the employee
- Any other expenses payments made to the employee (although there are certain exemptions that don’t need to be reported on P11Ds, such as phone bills, business entertainment expenses and uniforms and work tools)
P11D forms can be submitted in hard copy or online.
Are There Any Additional Rules?
Broadly speaking, the ‘cash equivalent’ amount stated on a P11D form should be the cost to you, as the employer, of providing the benefit (inclusive of VAT); less any amount made good by the employee. However, there are some very complex additional rules surrounding calculation of cash equivalents, especially for benefits such as company cars. Although HMRC provides online calculators to assist in this area, it is still a complex task and coupled with the fact that completing all the necessary P11D forms can be an onerous undertaking, this is one more good reason why your company should consider outsourcing its payroll to a specialist external payroll provider.
What If I Make A Mistake?
If you carelessly or deliberately make a mistake on a P11D form and end up paying too little tax or claiming too much in tax relief as a result, then your company could be fined up to 100% of the owed tax. You could also be fined £100 per month for every 50 employees if you fail to submit the form by July 6, i.e. within three months of the end of the relevant tax year.
You need to keep records of benefits and expenses payments for three years after the end of the tax year to which they relate, in case HMRC want to inspect your records.
A P11D(b) is a separate form used to report the amount of Class 1A National Insurance contributions due on the expenses and benefits you’ve provided to employees and directors.
There Is An Alternative
However, there is an alternative to completing P11D forms. You can deduct and pay tax on most employee expenses via your payroll (doing this is sometimes known as ‘payrolling’) as long as your company registered with HMRC to do this before the start of the tax year in question. If your company does this though, you still need to submit form P11D (b) to give details of NI contributions.
For an informal chat about P11ds and outsourcing, give our team a call on 0333 358 3414 or get in touch today.
Last Updated on 3 weeks by Hannah Ingram