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What is P11D?

A P11D is a form employers use to report benefits and expenses provided to employees that aren't included in payroll.

Example

Company provides a car worth £5k BIK and £1k health insurance. These go on your P11D.

Key Dates

Employers must submit by 6 July after tax year ends

How P11D Works in Practice

The P11D is the form employers use to report Benefits in Kind (BIK) and reimbursed expenses to HMRC for each employee and director who received them during the tax year. It covers non-cash perks that are not processed through payroll, such as company cars, private medical insurance, interest-free loans, and living accommodation. If you run a small limited company and provide yourself with any benefits, you must file a P11D.

Common items reported on the P11D include: company cars and fuel, private medical or dental insurance, interest-free or low-interest loans above £10,000, gym memberships, non-business travel expenses, accommodation, and childcare above the exempt amount. Each benefit has its own calculation rules. For example, company car BIK depends on the car's list price and CO2 emissions, while loan benefits are calculated using HMRC's official interest rate (currently 2.25%).

Alongside the P11D, employers must also submit a P11D(b) form. This is the summary form declaring the total Class 1A National Insurance due on all the benefits reported across all P11Ds. Class 1A NI is charged at 15% (2025/26) on the total cash equivalent value of all benefits and is paid entirely by the employer -- the employee does not pay Class 1A NI.

Many employers now use 'payrolling of benefits' as an alternative to the P11D. This means the benefit values are included in the employee's pay each month, and tax is deducted through PAYE in real time. If an employer payrolls all benefits, they do not need to file P11Ds for those benefits. However, they must still file a P11D(b) and pay Class 1A NI. Payrolling must be registered with HMRC before the start of the tax year.

Step by Step

At the end of each tax year, you review all benefits and expenses provided to each employee and director. For each reportable benefit, you calculate the 'cash equivalent' value using HMRC's rules. For example, a company car's cash equivalent is based on: (list price of the car including accessories) multiplied by the appropriate percentage (based on CO2 emissions). Private medical insurance is valued at the cost to the employer.

You then complete a P11D for each relevant employee, listing all their benefits and their values. The P11D is submitted to HMRC by 6 July following the tax year end. A copy must be given to each employee by the same date so they know what has been reported and can check their tax code reflects the correct amounts. The P11D(b) and Class 1A NI payment are due by 22 July (19 July if paying by cheque).

Once HMRC receives the P11D, they adjust the employee's tax code for the following year to collect the tax due on the benefits. Alternatively, if you file a Self Assessment return, the benefits are declared there.

Practical Tips

  • Consider payrolling benefits to simplify year-end reporting and give employees clearer visibility of their tax position throughout the year
  • Keep detailed records of all benefits provided, including costs, dates, and recipients -- HMRC can enquire into P11Ds for up to six years
  • If you provide yourself with a company car through your Ltd company, check whether the BIK cost outweighs the personal cost of owning the car yourself
  • Review exempt benefits carefully -- items like workplace parking and one mobile phone are genuinely tax-free and do not need to be reported

Common Mistakes to Avoid

  • Missing the 6 July deadline for P11D submission -- HMRC charges penalties of £300 per form, plus £60 per day if late
  • Not providing employees with copies of their P11D -- they need these to check their tax codes and complete Self Assessment returns
  • Forgetting to include director benefits in your own company, even if you are the sole director -- HMRC still requires a P11D
  • Failing to report trivial benefits that exceed the £50 threshold or the £300 annual director limit, making them fully taxable BIK

Frequently Asked Questions

Do I need to file a P11D if I payroll my benefits?

If you payroll all benefits for an employee, you do not need to file a P11D for them. However, you must still submit a P11D(b) and pay Class 1A NI on the benefits. You must register to payroll benefits with HMRC before the tax year starts.

What benefits are exempt from P11D reporting?

Certain benefits are exempt, including: trivial benefits under £50 (with a £300 annual cap for directors), employer pension contributions, workplace parking, one mobile phone, bicycles under the Cycle to Work scheme, and eye tests for VDU users.

How does a P11D affect my tax code?

HMRC uses the P11D values to adjust your tax code. The value of your benefits is deducted from your Personal Allowance, so your tax code number reduces. For example, if you have £3,000 of benefits, your code might change from 1257L to 957L.

What is the Class 1A NI rate on benefits?

For 2025/26, Class 1A NI is charged at 15% on the total cash equivalent of all benefits reported on P11Ds. This is paid entirely by the employer and is due by 22 July following the tax year end.

Source: HMRC 480 Expenses and Benefits Guide: https://www.gov.uk/government/publications/a-guide-to-expenses-and-benefits and Employment Income Manual (EIM20000+): https://www.gov.uk/hmrc-internal-manuals/employment-income-manual

Related Terms

Benefit in Kind (BIK)

A Benefit in Kind is a non-cash perk from your employer (like a company car or health insurance) that's taxed as if it were salary.

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