A P11D, which has been with us since the early 1960s, is a form which tells HMRC about benefits received on top of an employee’s salary.

Think of it as a way of reporting the “extras” that aren’t paid in cash but still have value, things like:

• a company car
• private medical insurance
• gym membership
• or an interest-free/low-interest loan

It’s all about tax. Even though these perks aren’t part of your salary, HMRC still considers them “taxable benefits”, so they need to know about them to make sure you’re paying the right amount of tax.

An Employer’s responsibility

In the UK, employers have a specific set of responsibilities when it comes to P11Ds and benefits in kind.

1. Identify what needs reporting

The employer must track and identify any taxable benefits provided to employees during the tax year. This can include things like company cars, private medical insurance, loans, or other perks.

2. Keep accurate records

Throughout the year, employers need to maintain good records of:

• What benefits were provided
• Who received them
• The taxable value of those benefits

Good payroll and HR processes are key here, because missing information can lead to incorrect reporting.

3. Prepare and submit P11D forms

After the tax year ends (5 April), the process is to:

• Complete a P11D for each relevant employee
• Submit them to HMRC by 6 July

Also, need to submit a P11D(b), which is a summary form showing the total Class 1A National Insurance due on all benefits provided.

4. Pay Class 1A National Insurance

Employers must pay Class 1A NICs on most taxable benefits. This is separate from the employee’s tax and is the employer’s cost.

• Deadline for payment: 22 July

5. Provide copies to employees

Employees must be given a copy of their P11D so they understand:

• What has been reported to HMRC
• What benefits may affect their tax code or tax bill

Payrolling of benefits

Some employers now use payrolling of benefits, which means benefits are taxed through payroll in real time instead of using P11Ds. If they do this, they must:

• Register with HMRC in advance
• Still submit a P11D(b) for Class 1A NICs

Forms, deadlines and responsibilities are forever changing. Remember we are here for you for all things Payroll or HR, so please reach out to your Advo Account Manager if you need any help or more detailed information that relates to you.

Article written by Advo Payroll Manager, Caroline Jackson