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A guide to P11Ds for 2019

13th May, 2019

It’s almost time to submit your P11Ds for the 2018/2019 tax year. Nottingham chartered accounts, Clayton and Brewill, provide some guidance on P11Ds to help you get organised in advance of the July submission deadline.

Auto-enrolmentWhat is a P11D?

A P11D is a mandatory HRMC form that details expenses and benefits provided to company employees and directors.

Who is responsible for submitting P11Ds?

P11Ds are filed by the employer or company and not by the employee.

What needs to be included in a P11D?

 Everything that is an employee benefit or ‘perk’ should be included. Examples include:

  • Company cars
  • Private health insurance
  • Vouchers
  • Season ticket loans
  • Assets that have a personal use
  • Non-business travel expenses
  • Non-business entertainment expenses
  • Leisure subscriptions
  • Relocation expenses

What doesn’t need to be included?

Certain routine, business-related expenses don’t need to be reported to HMRC. These are known as ‘exemptions’.

Exempt expenses and benefits include:

  • Business travel costs (and associated subsistence costs)
  • Business entertainment expenses
  • Phone bills
  • Uniform or tools for work

To qualify for an exemption, certain conditions apply, which can be found here.

 When do I need to submit?

 Regardless of your company year end, all P11Ds must be filed by 6thJuly following the tax year in question and the Class 1A National Insurance Contributions (NICs) paid by the 22ndJuly 2019 (19thJuly if paying by cheque).

What are payrolled benefits?

If you collect tax on employee benefits and expenses through your payroll system you do not need to complete a P11D.

If you opt to payroll your benefits and expenses you need to inform HMRC prior to the start of the tax year you wish to payroll for. This can be done online.

You must add the cash equivalent of the employees’ benefits to their pay and then tax them through your payroll.

If you opt to payroll your benefits and expenses, you will still need to work out the appropriate NICs and complete a P11D(b).

What is a P11D(b)

A P11D(b) is basically a form that declares that you have sent P11D forms to HMRC and is also where you report on the Class 1A NICs due on associated expenses and benefits.

You will be required to submit a P11D(b) form if:

  • You’ve submitted any P11D forms
  • You’ve paid employee expenses or benefits through your payroll
  • HMRC have asked you to – either by sending you a form or email

Penalties apply for not submitting your P11Ds on time, so it’s important that you comply. It’s always better to do these things sooner rather than later to allow sufficient time to gather the relevant information.

If you need assistance with your P11Ds, our friendly team can help. Please call us or send us an email for further information.

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