What is a P11D form? What employers need to know ahead of the July 6 deadline
Employers will need to submit a P11D form if their employees are receiving benefits of any type on top of their salary. Here’s everything you need to know.
We’re well into a new tax year, but that does not mean a pause for paperwork. Far from it, especially for employers. As well as having to issue P60s soon, employers will also need to send out P11D and P11D(b) forms over the next few weeks.
The deadline to submit these forms is fast approaching, and if you’re running a small business you might be tempted to leave it until the last possible minute. But the July 6 deadline will come around a lot faster than you might think, making now the time to familiarise yourself with it if you haven’t already.
Employers will also need to file a P11D(b) form. We break down the difference between the two, what you need to know before filing, and how you can make the process easier.
What is a P11D form?
A P11D form is used to report benefits provided to employees, including health insurance, company cars or company loans and travel expenses. Basically, anything that goes beyond a basic salary.
In short, the P11D form is used by employers to submit information relating to individual benefits. Alongside these you need to submit a P11D(b) form.
What is a P11D(b) form?
A P11D(b) form is a declaration from an employer providing the amount of Class 1A National Insurance contributions due on the benefits provided to the employees.
Class 1A contributions must be paid by employers on the work benefits they give their employees. These need to be paid by July 22 each year for the previous tax year, or July 19 if you’re paying by post.
Both the P11D and P11D(b) forms need to be submitted by July 6.
Employers have to submit the P11D(b) even if they’ve processed benefits through payroll, provided that Class 1A NI is due. These forms also have to be submitted for each employee who has received benefits.
Additionally, if HMRC has sent a P11D(b) reminder and you don’t owe any Class 1A NI, you still need to submit a “nil return” to avoid penalties.
Failure to submit the P11D form will lead to a fine of £300, and an extra £60 for every day after that. If you submit the P11D(b) late, you’ll incur a £100 fine per 50 employees for each month or part month your P11D(b) is late.
How to manage your P11D form and P11D(b)
If this all sounds complicated, it’s because it is. But there are steps you can take to minimise the stress ahead of the deadline.
Briefing your staff on clear internal policies regarding benefits, using digital expense management tools, and training staff on allowable expenses will all help lead the way towards smoother reporting.
Separately, make sure you identify the employee perks that fall under the scope of Class 1A NI contributions to make sure you’re reporting correctly.
It’s also important to keep proper track of expenses. There are software services you can turn to for this, such as Pleo, TaxScouts, or Expensify.
Software platforms such as ANNA Money, Sage, and Xero can help produce these forms automatically, freeing up your time and enabling you to run your business more efficiently.