Employers who provide benefits in kind to employees and directors normally need to report these to HMRC using a P11D form so the correct amount of tax can be paid. In this article we explain what P11D forms are, who needs to use them, and what to include.
Businesses use P11D forms to tell HMRC about the benefits in kind they provide to staff. Benefits in kind, or BiKs for short, are goods and services which some employers give to employees for free or at a discounted rate alongside their normal salary. For example, a company car or a gym membership.
Although benefits in kind don’t take the form of cash, they do increase the value of what the employee receives from their employer. To keep things fair, and so people can’t avoid tax by taking part of their salary as a benefit instead, they’re reported using a P11D form and subject to tax and National Insurance.
You’ll still need to submit a P11D(b) even if you deduct and pay tax on benefits through your payroll.
What is the deadline to submit a P11D form?
The deadline for submitting a P11D form is 6th July following the end of the tax year that it relates to. For example, if you need to submit a P11D form for the 2023/24 tax year, the submission deadline is 6th July 2024.
Do I need to give employees a copy of their P11D?
Yes, employers are legally obliged to give employees a copy of the information provided to HMRC about their benefits in kind. If they’re self-employed on the side (which you might not know about!) or a company director, they’ll need that information for their Self Assessment tax return. They can also ask HMRC for a copy of the information which you submit.
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