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Reporting benefits in kind - form P11D

A P11D is used to report to HMRC any personal benefits to employees and directors that haven’t been processed through payroll.

At the end of each tax year, if a company provided anything that is considered to be of personal benefit to an individual, it must be declared to HMRC.

Benefits in kind are declared on a form called a P11D. The value of the benefits are assessed then the company must pay class 1A National Insurance (13.8% for 2019/20) on their value. In addition, the employee’s tax code will be adjusted and additional income tax will be deducted from the employee’s salary.

We recommend that any expenses claimed through a company are incurred wholly and exclusively for business purposes, and that they are considered essential to the operation of the business. Applying this approach will help avoid the need for a P11D.

When is a P11D required?

The majority of employees do not need a P11D. If however an individual received benefits personally from a company during a given tax year, the company will need to file a P11D. Examples of benefits include:

  1. Company car or motorbike

  2. Interest free or low interest loan from the company exceeding £10,000 at any time in the year

  3. A directors loan exceeding £10,000 at any point in the tax year

  4. Relocation expenses in excess of £8,000

  5. Other non cash benefits, e.g. health insurance or gym membership

Deadlines

DeadlineAction
31st MayComplete the P11D questionnaire on your Provestor dashboard
6th JulySubmit P11D form to HMRC
19th JulyPayment of class 1A national insurance if paid by any other method
22nd JulyPayment of class 1A national insurance if paid electronically