Employers must submit form P11D for reporting end-of-year expenses and benefits to HM Revenue and Customs (HMRC).
- To confirm that you already submitted P11D forms.
- If you paid tax for expenses or benefits through your payroll.
- If you get the form from HMRC (or an email) requesting that you fill it in and send it back to them.
HMRC use form P11D(b) to get the details of how much Class 1A National Insurance you need to pay. Thus, it is a report of all the expenses payments and benefits (BIK) you provided to your employees.
As an employer, you might get asked to submit a P11D(b) – even though you do not owe any Class 1A National Insurance. In this case, you can complete a declaration online to inform HMRC that you have no return of Class 1A National Insurance contributions.
Collecting Tax on Benefits through Payroll
Employers can use ‘payroll’ to deduct and pay tax on most types of employee expense payments. But, you would need to register and be set up to use it by the start of the tax year (6th of April).
There would be no need to submit form P11D if you are ‘payrolling employees‘. HMRC get all the information they need about employee tax on benefits from employer payroll.
Note: Employers still need to submit form P11D(b) to complete payments on any Class 1A National Insurance owing.
Which Expenses and Benefits to Report
HM Revenue and Customs use different methods to calculate each expense or benefit. Check through the full list of expenses or benefits (A to Z) to determine what to report and pay (details below).
Note: In some cases, you can make a one-off payment to cover any ‘minor, irregular or impracticable’ benefits or expenses. A different section explains how PAYE Settlement Agreements work.
How to Report Employee Benefits and Expenses
There are several different ways to report expense payments and benefits in kind (BIK). You can choose between any of these methods:
- HMRC-recognised commercial payroll software
- HMRC PAYE Online for employers
- HMRC Online End-of-year Expenses and Benefits service
Note: You can also mail your report to the P11D Support Team. Download forms P11D and P11D(b) (fill them in) and send them by post.
Correcting an Error on P11D Form
To correct a P11D form you must include all the benefits and all the expenses for the tax year. Thus, do not ‘only’ submit the ones that you want to change.
You submitted a P11D form that showed a medical benefit of £400 and a car benefit of £2,200. The car benefit was the correct amount but the medical benefit should have been £450.
You should submit a new P11D form that shows both the medical benefit of £450 and the car benefit of £2,200.
Correcting an Error on P11D(b) Form
To correct a P11D(b) form you should include the total amount of Class 1A National Insurance that you need to pay. Thus, do not send the difference from the previous version.
You submitted a P11D(b) form that showed you needed to pay £9,000 of Class 1A National Insurance. But, you then discovered that you should have added £400.
Thus, the new form that you send should show the amount as £9,400.
The forms display the most recent tax year. You would need to write a different tax year on the form if your report is for a different tax year. You must also write:
- The use of the form is to correct an error made in a different tax year to the one printed on the form.
- The correct tax year that relates to the amendment.
Note: Even if the original was an online submission you would need to submit a correction using the paper form.
Send All New or Corrected Paper Forms to:
P11D Support Team
HM Revenue and Customs
Penalties for Providing Inaccurate Information
Carelessly or ‘deliberately’ giving inaccurate information in a tax return can result in a financial penalty. It would apply most if it means you fail to pay enough tax or you over-claim tax reliefs. Your record keeping must show the date and accurate details of the benefits and expenses that you provide for your employees.
ALSO IN THIS SECTION
Expenses and Benefits for Employers | Obligations for dealing with employment related benefits (BIK).
List of Expenses and Benefits | A to Z checklist of employment related expense payments and benefits.