P11d – Expenses and Benefits

Many employers make mistakes with this end of year form

Form P11D (Expenses and Benefits) is a tax form filed by an employers for each director and for each employee earning over £8500 per year. P11Ds are used to report benefits provided and expense payments made to employees by employers that are not put through the payroll. The employees are also given a copy, should they need it for a self-assessment tax return. At the end of the tax year you’ll usually need to submit a P11D form to HMRC for each employee you’ve provided with expenses or benefits.

You should also submit a P11D(b) form if:

  • you’ve submitted any P11D forms
  • you’ve paid employees’ expenses through your payroll
  • you’ve been sent a P11D(b) form by HMRC

Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided. If you don’t submit any P11D forms, you can tell HMRC that you don’t owe Class 1A National Insurance by completing a declaration.

Paying tax on benefits through your payroll

You can deduct and pay tax on most employee expenses through your payroll as long as you’ve registered with HMRC before the start of the tax year (6 April). In which case you don’t need to submit a P11D form for an employee if you’re paying tax on all their benefits through your payroll.
You’ll still need to submit a P11D(b) form so you can pay any Class 1A National Insurance you owe.

What to report

Each expense or benefit is calculated differently. There are currently 14 sections of the P11D:

  • A Assets Transferred
  • B Payments made on behalf of the employee
  • C Credit Cards and vouchers
  • D Living Accommodation
  • E Mileage Allowances
  • F Cars and car fuel
  • G Company Vans
  • H Beneficial Loans
  • I Medical Health
  • J Qualifying relocation expenses payments and benefits
  • K Services supplied
  • L Assets placed at the employee’s disposal>
  • M Other items (including subscriptions and professional fees)
  • N Expenses payments made to, or on behalf of, the employee

Penalties

You may be charged a penalty if you carelessly or deliberately give inaccurate information in your tax return that results in you:

  • not paying enough tax
  • over-claiming tax reliefs