P11D forms – Deadline for submissions near

The deadline for businesses to complete P11D forms is fast approaching, with all forms needing to be submitted online to HM Revenue & Customs (HMRC) by 6 July 2023.

The P11D form is a tax form that employers in the UK must submit to HMRC. This form is used to report the value of certain expenses and benefits received by employees and company directors.

Such benefits may include company cars, private health insurance, interest-free loans, or any other non-cash benefits.

As these benefits have a monetary value, they are considered as a form of income known as Benefits in Kind (BiK) and are therefore subject to tax.

How to Submit a P11D Form

The process of submitting a P11D form involves calculating the cash equivalent of the benefits provided to each employee. This value is what’s used to determine the tax owed.

Not all benefits need to be reported. For example, routine business expenses such as travel and accommodation for business trips are exempt.

A full list of reportable benefits is available on the HMRC website to determine which apply to your employees.

The cash equivalent of a benefit is usually its cost to you, the employer. For certain benefits, like company cars or loans, there are specific rules on how to calculate their value. The HMRC’s guidelines provide detailed instructions.

Each section of the P11D corresponds to a different type of benefit. Fill in the cash equivalent for each benefit that applies to each employee. If a certain benefit doesn’t apply, leave the relevant section blank.

You could previously submit P11D forms by post, but recent changes made by HMRC as part of their Making Tax Digital (MTD) program mean that these must now be submitted online. Before submitting online, you will need to register for HMRC’s PAYE online service.

A copy of the P11D form must also be given to your employee for their records. They need this information to submit their self-assessment tax return.

If you’d like any more information about P11D forms and how to submit them correctly, please contact us.