It is vital that companies keep on top of their payroll and tax liabilities, and a P11D form is another vital form that needs to be completed and paid correctly.

Here is all you need to know to stay on top of the P11D requirements, so you do not fall foul of the penalties for not correctly following the rules.

What is a P11D form?

A P11D form is used to report items and services that employees receive that are part of their remuneration and have not been taxed through payroll. This includes perks such as company cars, health insurance, loans and shares.

These are known as benefits in kind, which essentially bump up an employee’s income. As a result, the employer may have to pay National Insurance contributions on them.

When do I need to send in a P11D form?

P11D forms for the 2021/22 tax year must be sent to HM Revenue & Customs (HMRC) by 6 July 2022. Class 1A National Insurance contributions then have to be paid in full by 19 July 2022.

It is important to ensure the form is submitted in time, as penalties can be incurred for late filing.

What is a P11D(b) form?

A P11D(b) form is used to declare the amount of Class 1A National Insurance contributions that are due for payment on the benefits in kind. It must be filed at the same time as the P11D form.

How to report a P11D

You can file a P11D online using payroll software, or businesses that have up to 500 employees can use HMRC’s PAYE Online Service.

Payroll and benefits

It should be noted that some benefits in kind are processed through payroll so could be liable to Class 1 National Insurance contributions and income tax, so be sure to check this.

Do you need advice on P11D forms? For help on payroll and related matters, don’t hesitate to contact our expert team.