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What is P11d?
If you’re an employer and provide expenses or benefits to employees or directors, you might need to tell HM Revenue and Customs (HMRC) and pay tax and National Insurance on them.
You can find a full list of P11d benefits find it here
There are different rules for what you have to report and pay depending on the type of expense or benefit that you provide.
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits.
You’ll also need to submit a P11D(b) form if:
you’ve submitted any P11D forms
you’ve paid employees’ expenses or benefits through your payroll
HMRC have asked you to - either by sending you a form or an email
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
If HMRC has asked you to submit a P11D(b), you can tell them you do not owe Class 1A National Insurance by completing a declaration.
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits.
You’ll also need to submit a P11D(b) form if:
you’ve submitted any P11D forms
you’ve paid employees’ expenses or benefits through your payroll
HMRC have asked you to - either by sending you a form or an email
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
If HMRC have asked you to submit a P11D(b), you can tell them you do not owe Class 1A National Insurance by completing a declaration.
Deadlines
You’ll get a penalty of £100 per 50 employees for each month or part month your P11D(b) is late. You’ll also be charged penalties and interest if you’re late paying HMRC.
What expenses can I claim from my business which I do not pay tax or national insurance?
The list of benefits and expenses that can be provided to a director or employee without triggering a tax or National Insurance charge includes:
• Approved mileage allowance payments and passenger payments, you may also claim VAT (if registered).
• Christmas parties and other annual functions [to a maximum of £150 per head].
• Company loan not exceeding £10k in the year.
• Contributions to a registered pension scheme.
• Eye tests and corrective appliances, and Health screening and medical check-ups.
• Employer provided cycles and cyclists’ safety equipment.
• Employer-provided childcare.
• Employer-contracted childcare - to maximum of £55 per week.
• Food and drink consumed en route or at a place where you travel to work occasionally.
• Incidental overnight expenses [£5 per night in UK, £10 per night abroad].
• Long service awards.
• Low or zero emission cars for self and family.
• Mobile phones – one phone per employee may be provided tax-free and must be in the business name.
• Removal expenses and benefits [to a maximum of £8,000].
• Subsidised public bus services.
• Suggestion scheme awards.
• Trivial gifts that are not service related.
• Travel expenses from home, if that is the locus in quo of the business.
• Use of your home as an office.
• Travel expenses to and from a temporary workplace for up to 24 months.
• Work-related training.
• Works transport services.
If you would like any help completing your P11d report by 6th July or any expense related questions, please contact me.
