Reporting benefits in kind - form P11D
A P11D is used to report to HMRC any personal benefits to employees and directors that haven’t been processed through payroll.
At the end of each tax year, if a company provided anything that is considered to be of personal benefit to an individual, it must be declared to HMRC.
Benefits in kind are declared on a form called a P11D. The value of the benefits are assessed then the company must pay class 1A National Insurance (13.8% in 2023/24) on their value. In addition, the employee’s tax code will be adjusted and additional income tax will be deducted from the employee’s salary.
We recommend that any expenses claimed through a company are incurred wholly and exclusively for business purposes, and that they are considered essential to the operation of the business. Applying this approach will help avoid the need for a P11D.
When is a P11D required?
The majority of employees do not need a P11D. If however an individual received benefits personally from a company during a given tax year, the company will need to file a P11D. Examples of benefits include:
Company car or motorbike
Interest free or low interest loan from the company exceeding £10,000 at any time in the year
A directors loan exceeding £10,000 at any point in the tax year
Relocation expenses in excess of £8,000
Other non cash benefits, e.g. health insurance or gym membership
Deadlines
| Deadline | Action |
|---|---|
| 31st May | Complete the P11D questionnaire on your Provestor dashboard |
| 6th July | Submit P11D form to HMRC |
| 19th July | Payment of class 1A national insurance if paid by any other method |
| 22nd July | Payment of class 1A national insurance if paid electronically |