What is a P11D form?

A P11D is a form that shows the type and value of a company benefit given by an employer to an employee.

The P11D is produced by an employer and given to an employee after the end of each tax year.

HMRC are also sent a copy of the P11D so they can update your PAYE records with the type and value of any company benefits you received during the tax year.

HMRC (the tax office) needs a P11D so they so they can adjust your tax code to ensure you pay the right amount of income tax.

Should I get a P11D form?

If you receive a taxable company benefit then you would normally receive a P11D from your employer after the tax year ends.

To get a form P11D you need to:

• Earn £8500 or more during the tax year.
• Be in receipt of company benefits which are classed as taxable.

If HMRC classes a company benefit as taxable you will pay income tax on the benefit just like you do on your employment income.

What are P11D benefits?

A number of company benefits exist that need to be entered on a P11D.

Some of the most common P11D benefits include a company car or van or a health benefit.

The most up to date P11D form has 14 sections covering the following P11D expenses:

• 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 Allowances

• Section F: Cars and car fuel
• Section G: Company Vans
• Section H: Beneficial Loans
• Section I: Medical 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

Calculating P11D benefits

It’s important that you make sure you get your P11D so you can check it to see if it’s correct.

If the P11D is wrong then you will not pay the correct amount of income tax.

You should check the value of your company benefit(s) are correctly reported on your P11D.

For benefits like a company health scheme this is pretty easy but if you receive a company car it can sometimes become a little confusing.

Due to the way HMRC calculates a company car benefit or BIK tax it’s worth using their company car and fuel benefit calculator to check your figures.

What happens if I don’t get a P11D?

The P11D should be given to you by your employer automatically. If you don’t receive one you should ask your payroll department for a copy.

It’s possible that your employer might not provide you with a P11D – they’re not under any obligation to do so.

However in the event that no P11D is issued they are still required to inform you of the value of each benefit you’ve been given.

What happens if my P11D goes missing? Typically you can ask your employer for a replacement P11D. If they are unable to provide one, get in touch with HMRC for a duplicate via your personal tax account or the HMRC app.

When can I expect my P11D?

You should receive your P11D from your employer after the tax year ends (from 6 April). Employers have up to the 6 July to submit P11D details to HMRC so you might not receive one until around this time.

If you need your P11D urgently it’s worth asking your payroll department (nicely) to see if they can help you.

Retaining your P11D is crucial as it might be required to complete a tax return or check your tax code.

P11D and your tax code

Having a company benefit will mean your taxable income will be increased and you’ll get a lower tax code resulting in you paying more income tax.

If your tax code does not include the correct benefits you will either pay too much or too little income tax.

If you stop receiving a company benefit or a benefit changes you must ensure that HMRC knows so they can adjust your tax code accordingly.

For example if you stop receiving a company benefit during a tax year and HMRC don’t update your tax code you will keep paying tax on a benefit you don’t have.

Self assessment tax returns and your P11D

If you fill in a self assessment tax return you will need to enter the figures from your P11D in the relevant box in the employment section of your tax return.

If you don’t your tax return will be incorrect and in theory you won’t pay enough income tax which HMRC will ask you to repay in most cases.

HMRC will check your tax return against the P11D form submitted by your employer to see if there is a difference between what was entered on your P11D and your tax return.

Are some company benefits tax free?

Some company benefits provided by your employer are exempted from tax and don’t need to be put on a P11D. These include:

• Eating in the company’s cafeteria.
• Use of a company mobile phone.
• Parking facilities at your workplace.
• Christmas parties can be tax free if they do not exceed a value of £150 per person.

What are trivial benefits in kind?

HMRC classes some company benefits “trivial” meaning they don’t need reported on a P11D because HMRC deems them as insignificant.

A company benefit is typically deemed insignificant if it:

• Has a value under £50.
• Is unrelated to work related performance.
• Is not cash or similar in nature (for example a gift voucher).
• Isn’t part of your contract of employment.
• Doesn’t form part of a salary sacrifice arrangement.

Are employer contributions into my pension taxable?

Employee pension schemes that receive contributions from employers are generally not subjected to income tax, as long as the amounts remain within the annual pension allowance limit.

If the pension annual allowance threshold is breached additional income tax may be due but this is an unlikely event for the majority of taxpayers.

Are expenses included on a P11D?

If you receive a reimbursement from your employer for a work related expense the value may be exempted which means there’s no requirement for it to be reported on a P11D.

One of the most frequent instances of an exempted ‘business’ expense is travel on a work related journey (not normal commuting).

There are several categories under which business expenses can qualify for exemption including:

• Tools and equipment.
• Protective clothing like hi viz jackets, safety gloves and footwear.
• Professional fees and memberships (if you need to pay it to be able to carry out your professional duties).

Am I due a P11D tax rebate?

You could be due a P11D tax rebate if your tax code has been wrong. The reasons why your tax code could be wrong are:

• You have stopped receiving a company benefit and you still have the benefit in your tax code.
• You have a company benefit and it has reduced and your tax code has not been changed accordingly.
• Your employer has used the wrong tax code against your salary.

If you think your tax code is wrong because of your company benefits or for any other reason you should contact HMRC so they can check your PAYE record and make any necessary adjustments.

P11D for employers

Employers need to submit a P11D to HMRC for each employee which declares the value and type of company benefits paid.

The deadline for HMRC to receive the P11D declaration is the 6 July for the previous tax year. Failure to submit the P11D in full by the deadline can lead to HMRC fines and or penalties.

A business doesn’t need to complete a P11D if tax is paid on company benefits and expenses by employees directly through payroll.

What is a P11D(b) form?

A P11D(b) form is only for employers and is used to report class 1 national insurance contributions liability caused by any company benefits and expenses paid to employees.

The P11D(b) serves as a comprehensive record of all benefits (both those declared on P11Ds and those dealt through payroll) that your business has provided over the course of a year.

As far as HMRC is concerned, it’s confirmation that these are all the benefits and expenses your company has distributed within that year, and you’ve intentionally omitted nothing.

The P11D(b) form should be submitted to HMRC at the same time as the P11D.