Jun302023

When running or managing a business, you may discover that you are in a position to provide specific benefits or cover expenses for your employees. However, it is important that you keep in mind that these gratuities will be subject to tax. You will need to keep track of what you provide and inform HMRC for tax purposes via a completed P11D form.

What is a P11D form?

A P11D form is an official form of documentation submitted to HMRC annually. The form is used by employers to list expenses or benefits provided to employees within the company within that period of time. If you need to submit more than one P11D form, a P11D(b) form will also be required. With this, HMRC will be able to see how much you’ll pay in Class 1A National Insurance (NI) in regard to the expenses and benefits you have provided.

What are benefits in kind?

Benefits in kind, often abbreviated to ‘BIK’, refers to the non-cash benefits that employees receive in addition to their salary. These benefits could include things such as:

  • A company car
  • Medical insurance
  • Childcare vouchers
  • Subsidised or free meals
  • Gym memberships
  • Pension contributions

What should be included on a P11D form?

As a general rule, any item that employers fund for employee benefit needs to be declared on a P11D form. However, what you’ll be expected to pay can vary depending for each BIK as expenses will be calculated differently. Along with each benefit, you’ll need to declare how much class 1A National Insurance (NI) is to be owed. If you are looking for advice on how to state the benefits you have provided, take a look through this A to Z guide.

When to submit your P11D, and penalties for missed submissions

P11D forms must be submitted to HMRC by 6th July after the end of the tax year. If you fail to meet to this deadline, you could be granted a penalty fine of £100 for every 50 employees. For each month that your form submission is missed, the amount will be charged as a repeat.

At Bells Accountants, we provide professional guidance and support when it comes to maintaining an effective business. To find out more about how we could help you, get in touch. Call us on 020 8468 1087 or send us an email at .