The purpose of all the PAYE forms, such as the P45, P60 and P11D form is to let you, the Employer, tell HMRC everything they need to know about your Employees income, expenses and tax reliefs/allowances claimed. If you are an Employee you will receive your own versions of these forms to keep you informed of what your Employer has reported to HMRC so you can understand what Tax & NI they have paid over on your behalf. In this post we are going to take a closer look at HMRC’s P11D form and convert it into intelligible language.
What is a P11D Form?
The HMRC P11D form is designed to report on Benefits in Kind or ‘Perks’ which Employers provide in addition to salary. Common employee benefits in kind that may need to be reported on a P11d form include Perks such as:
- Private Healthcare;
- an Interest Free loan for a train season ticket;
- Gym membership;
- a Company Car;
- Mileage Allowance.
You need to submit an individual form for each Employee that received a Benefit (as well as letting them have a copy of the form to keep).
Generally there is further National Insurance Contributions to be paid by the Employer on the Benefits they provide since the cash value of the Perks are treated as though they are additional earnings by the Employee. For example if you provide one of your Employees with Private Healthcare for £120 per month for a full tax year, then you will need to declare this on box I of the P11d form for this particular Employee as a total of £1,440.
There are strict rules which apply, determining where the Employer must declare the individual values of each Benefit offered which must be split according to their type on the P11D form. Boxes shown in brown and marked with ‘1A’ on the P11d form represent items on which additional tax will be paid.
There are 14 sections on the P11D:
Section A – Assets transferred
Section B – Payments made on behalf of the employee
Section C – Credit cards and vouchers
Section D – Living Accommodation
Section E – Mileage allowance
Section F – Cars and fuel
Section G – Company vans
Section H – Beneficial loans
Section I – Medial Health
Section J – Qualifying Relocation payments
Section K – Services supplied
Section L – Assets placed at employee’s disposal
Section M – Other items
Section N – Expenses payments
Who needs to complete a P11D form?
P11Ds must be completed for Company Directors or Employees who earn over £8,500 per year. The P11D forms are completed by the Company, not the Employee – however if you are a contractor or freelancer then you may need to do so yourself, check with an accountant if you are unsure.
Is there a deadline for P11D submissions?
Yes, P11Ds must be filed by July 6th following the end of the tax year. For example, a P11D for the tax year April 2016-April 2017 needs to be filed by July 6th 2017 and any additional tax due should be paid by the 22nd July if paying electronically (19th July if paying by cheque).
What is a P11d(b)?
As an employer, in addition to submitting a P11d for for each Employee to HMRC, you must also submit a P11d(b). This is a form letting HMRC know the total P11d tax you need to pay them. You can complete this declaration online here.
What are the Penalties for Missing the Deadlines?
Employers will get a penalty of £100 per 50 employees for each month or part month your P11ds or P11D(b) is late. You’ll also be charged penalties and interest if you’re late paying HMRC.