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P11D Expenses and Benefits Forms

Here at Hartley Fowler, we offer a wide range of tax services to ensure compliance, including assistance with P11D forms.

What is a P11D Expense and Benefits Form? 

P11D is a form that is used to report benefits provided to employees or directors. Each tax year, employers are required to declare whether any non-salary benefits have been provided to their employees and submit this to HMRC. This submission is completed via the P11D expenses and benefits form.

What are P11D Benefits?

To ensure P11D compliance, certain items or services which employees receive from their company – other than their salary – need to be recorded on the P11D benefits form. Private healthcare, interest-free loans (e.g. to pay for train season tickets) and company cars should be included on the P11D employee benefits form.

The annual P11D benefits form must be reported to HMRC. This is because, when receiving a ‘benefit in kind’, there may be Class 1A National Insurance Contributions (NICs) to be paid.

It is important to note that the NICs due will be paid by the company, rather than the individual employee. However, not all benefits are taxable while some may be tax-exempt or have a reduced tax liability.

What type of expenses should you include on a P11D benefits form? 

Taxable expenses and the cash equivalent of any company-provided assets used privately by the director must be included on the P11D form. These are collectively known as benefits in kind. You should include the following:

  • Company cars or fuel allowances
  • Private medical insurance
  • Interest-free or low-interest loans
  • Gym memberships
  • Accommodation provided by the company
  • Non-business travel or entertainment

P11D Compliance Services

As part of our P11D compliance service, we can support you with the following matters:

  • P46 (Car) form – if you start or stop providing a car to an employee for private use
  • P11D expenses and benefits form
  • Calculating Class 1A National Insurance Contributions (NICs)

Next Step: Contact us about P11D Expenses and Benefits

Please contact us if you need further advice or have any questions about our P11D compliance services. Alternatively, please click to arrange a free consultation with one of our experienced tax accountants.

FAQs

What is a P11D form used for?

The P11D form helps report benefits in kind, ensuring that both employees and employers meet their tax obligations. It includes things like interest-free loans or private medical insurance.

Are all employee benefits reportable on a P11D form?

Not all benefits need to be reported. Only those that are considered “benefits in kind,” like private medical insurance or company cars, need to be included.

Are there exemptions available for certain benefits on the P11D?

Yes, some benefits may be exempt from P11D reporting or have reduced tax liability. For example, certain work-related training or pension contributions might not need to be reported.

Can an employer reimburse employees for benefits reported on a P11D?

Yes, employers can reimburse employees for some benefits. However, the reimbursement must meet specific criteria to avoid additional tax or NICs.

Can I file a P11D form online?

Yes, you can file your P11D form online using HMRC’s system. This makes the process quicker and more efficient.

What happens if I don’t submit a P11D form on time?

Failing to submit your P11D form on time can result in penalties. It’s important to meet the deadline to avoid unnecessary costs.

Do I need to submit a P11D(b) form as well?

Yes, along with the P11D, you also need to submit a P11D(b) form, which confirms how much Class 1A National Insurance is due on the benefits reported.

How can Hartley Fowler assist with P11D form submissions?

We offer expert help with P11D submissions, ensuring everything is reported correctly and on time, plus advice on calculating National Insurance and tax.

How do I calculate the taxable benefits for a P11D form?

The taxable benefit is typically calculated based on the cash equivalent of the benefit provided, such as the value of private medical insurance or a company car.

Can I include business expenses in the P11D form?

Business expenses, such as travel and equipment for work, generally don’t need to be included on the P11D unless they are also used for personal reasons.

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