If you are a Director or you have employees earning more than £8,500 per annum, with expenses and benefits, then you’ll need to prepare a P11D form.
P11D forms have to be prepared for each year ended 5 April with a submission deadline of 6 July.
The P11D rules are complex, so we’ve prepared a downloadable checklist to help - Download here
There are strict, and potentially punitive, penalties imposed by HM Revenue & Customs for the late submission or incorrect completion of the forms.
- P11D – Completed at the end of the tax year for employees with benefits earning £8,500 or more per annum and Directors with benefits.
- P9D – A simpler equivalent to a P11D used for employees earning less than £8,500.
- P11D(b) – The annual declaration showing the total Class 1A national insurance due.
- P46 (Car) – Used to inform HMRC when the provision of a car benefit to an employee starts and ends.
- P11D lists – If there a large number of employees with benefits then arrangements can be made with HMRC to submit the details in list form.
It is possible to save time and effort after the end of each tax year by applying for a dispensation in order to lessen the amount of work to be done in producing benefit-in-kind forms P11D.
An employer can apply for a dispensation for reimbursed business expenses that would otherwise have to be reported on form P11D. Once a dispensation is granted the employer no longer has to report those expenses and the employee does not have to enter them on a personal tax return and claim the deduction for business expenses.