6 July is the deadline for filing the P11D to HMRC but what is it?
The P11d is a statutory form required by HMRC from UK based employers to detail the cash equivalents of benefits and expenses that they have provided during the tax year to directors and employees.
The basic rule is that if you provide an employee with anything other than pay it may count as an expense or benefit, and you will need to check whether you need to report it to HMRC and pay any tax or national insurance on it.
Who completes the P11d?
The company, as an employer, is responsible for preparing a P11D. When completing form P11d you must enter the total value of the expenses and benefits in various categories that you provided to your employee during the tax year.
What sort of expenses and benefits are included?
- Company cars
- Company car mileage allowances and fuel
- Company vans provided for private use
- Private car mileage allowances and fuel
- Motorcycles provided for private use
- Payments for use of home telephones
- Mobile telephone usage and reimbursements
- Private medical insurance
- Subscriptions and professional fees
- Living accommodation
- Credit Card payments
- Interest-free and low interest loans
- Assets transferred
- Assets placed at the employee’s disposal
- Employer supported childcare
- Other benefits or expenses such as childcare costs, spouse or partner expenses on business trips etc
You must make sure that you give your employees a copy of the information from their P11D or P9D no later than 6 July. Payment of any Class 1A NICs owed on expenses or benefits you’ve provided must reach HMRC’s bank account by 22 July.
You don’t have to report some routine employee expenses to HMRC. This is called an ‘exemption’ and business expenses such as travel and subsistence, business entertaining and professional fees and subscriptions do not need to be reported on the P11D. However, these expenses can only be reimbursed at the actual cost incurred or repaid using an approved HMRC rate.
If you fail to meet the filing deadline of 6 July, you won’t incur penalties straight away. However, if the P11D isn’t filed by 19 July the employer will incur fines of £100 per month (or part month) per 50 employees.