P11Ds and the July Deadline: What You Need to Know

Summer marks a busy season of holiday goers for UK employers and managing covers for annual leave, but don’t fall into the trap of summer without making sure you are taking care of your deadlines!

 

July 6 is the P11D submission deadline, and it’s fast approaching. And if your business offers employees any benefits beyond their regular salary, it’s essential to understand what’s required.

This article will answer all your queries about these pesky, yet important forms: what are they? Why are they important? What is changing in 2025? How do you stay compliant without stress?

 

 

Summary

What is a P11D Form?

    Who needs to submit it?

Reportable Benefits: Dos and Don’ts

   Typical reportable benefits

   What doesn’t need reporting?

If You Miss The Deadline

2025 Update: P11Ds filed online

Real-World Scenario

A Quick P11D Checklist

How WE Support You

What is a P11D Form?

A P11D is a form meant to report benefits in kind (BIK) by employers to HMRC. Any perks or non-cash benefits provided to employees or directors that are tax-deductible fall under the BIK category, and they can range from company cars and private medical insurance to interest-free loans or even certain staff entertainment expenses.

P11Ds should not be confused with P11D(b) forms, which are instead used to report the total Class 1A National Insurance contributions due on the benefits provided.

Who needs to submit it?

Simply put, employers are the ones who must submit P11D forms if they have provided any taxable benefits. A P11D must be completed for each relevant employee and submitted after the end of the tax year (which is marked on April 5), with the deadline for filing with HMRC is July 6.

 

Reportable Benefits: Dos and Don’ts

BIK can take different forms, and we included the most common ones in this list:

Typical reportable benefits:

  • Company cars (including electric vehicles) and fuel cards;
  • Private health insurance;
  • Low or interest-free loans (e.g., for season tickets or home improvements);
  • Living accommodation;
  • Mobile phones not used solely for work;
  • Gym memberships or wellness perks paid by the company;
  • Staff entertainment (depending on context and thresholds);
  • Assets transferred to employees, such as laptops or furniture.

What doesn’t need reporting?

  • Trivial benefits under £50 (as long as they’re not cash or cash vouchers);
  • Business travel costs;
  • Office parties under the £150-per-head annual limit;
  • Equipment used solely for work.

If you still have queries, HMRC has detailed guidance on their website, but it’s always best to speak to your accountant.

 

If You Miss The Deadline

If you fail to file your P11D forms or pay the relevant National Insurance contributions on time, you could be hit with penalties and interest charges.

You can expect:

  • Penalties of £100 per 50 employees for each month the form is late;
  • Interest on late Class 1A NIC payments, due by 22 July (if paid electronically) or 19 July (if paid by post);
  • Potential inquiries from HMRC if errors or omissions are found.

In conclusion, the risk and financial implications are high. But with proper planning, this deadline can be easily managed. If you are worried about the deadline, you can contact your accountant for further support.

 

2025 Update: P11Ds Filed Online

From April 2025, HMRC will no longer accept paper P11D or P11D(b) forms. This change is a move that further solidifies HMRC’s broader Making Tax Digital strategy.

What this means for employers:

  • You must use HMRC’s PAYE Online portal or commercial payroll software to submit forms;
  • You should stop using paper forms this year to get used to the digital process;
  • Ensure your payroll system or accountant is equipped to handle digital P11D submissions.

While this change is designed to improve accuracy and efficiency, this simultaneously means that your internal processes might need reviewing now.

 

Real-World Scenario

Let’s go over a made-up scenario to better explain the process. You are the owner of a small business with 10 team members. Two team members use company cars, one receives private health insurance, and another got a £2,000 interest-free loan to help with commuting costs. All of these must be recorded in their individual P11D forms.

You will also need to calculate the Class 1A National Insurance contributions on these benefits, report the total in the P11D(b), and make the payment by the July deadline mentioned before. If you are using a payroll provider, this service should be included, however, it is your responsibility to ensure the deadline is met, so make sure to look out for any calls or emails.

 

A Quick P11D Checklist

To make things easier, here is a step-by-step guide on how to get ahead of the looming July deadline:

  1. Review all benefits provided during the 2024/25 tax year.
  2. Check which benefits are taxable and reportable.
  3. Calculate the value of each benefit (you may need support from your payroll software or accountant).
  4. Use digital tools to prepare and submit the P11D and P11D(b) forms to HMRC.
  5. Provide each employee with their P11D copy by 6 July 2025.
  6. Pay any Class 1A NIC due by 22 July 2025 (if paying electronically).

 

How WE Support You

At Benson Wood & Co, we work closely with clients to make sure P11D reporting is simple, stress-free, and accurate. From identifying which benefits need reporting to handling digital submissions and National Insurance calculations, our finance team is here to help.

Our payroll services are designed to keep your business compliant while freeing up your time to focus on what really matters. If you are unsure where to start or just want peace of mind ahead of the deadline, we are just a message away.

The P11D process might not be the most glamorous part of running a business, but it’s just as crucial as the other financial sides. Staying on top of deadlines, understanding what counts as a benefit, and getting ahead of digital filing requirements will keep you compliant and avoid unnecessary penalties. And when you get it done early, you can fully enjoy the summer and go on your annual leave.

We’re Not Just Accountants: 5 Unexpected Ways We Support Our Clients

Some might think accountancy is just about numbers on a page or ticking boxes at the end of the year. At Benson Wood & Co, we know it’s much more than that.

For many of our clients — small businesses, freelancers, and growing teams — we’re a sounding board, a strategist, a network matchmaker, and sometimes, even a bit of IT support. Here we explore five surprising ways our team goes beyond the books to support the real people behind the businesses we work with.

 

 

Summary:

The Role of the Modern Accountant Is Changing

1. We Help You Make Big and Small Decisions

2. We Spot and Fix Problems You Didn’t Know You Had

3. We’re Your Tech Translators – Especially During Digital Transitions

4. We Put You in Contact With People You Need

5. We’re in It for the Long Haul

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New Year, New Business: Financial Tips for Startups in Scotland

New year, new me.

New financial year… new business?

 

Using the excitement and ambitions that a new year provides, launching a new business seems like the perfect move right now.

However, it’s not an easy process and can quickly become overwhelming if the appropriate steps aren’t followed. Turning your entrepreneurial dream into reality requires careful financial planning and an understanding of key regulatory requirements.

This guide covers essential financial tips for startups in Scotland, including choosing the right business structure, breaking down tax obligations, and managing your startup finances effectively.

1. Choosing the Right Business Structure

Before you start trading, you need to decide the structure of your business. The legal structure of your business will dictate your tax obligations, liability, and overall operations. In Scotland, you can choose from the following common business structures:

  • Sole Trader: The simplest form of business, where you are personally responsible for debts and profits.
  • Partnership: A business run by two or more individuals who share profits and liabilities.
  • Limited Company (Ltd): A separate legal entity that offers limited liability protection to its owners.
  • Limited Liability Partnership (LLP): A hybrid structure offering liability protection while maintaining flexibility in management.

For many startups, forming a limited company is an attractive option due to its ability to limit personal liability. However, it comes with additional administrative requirements. Many businesses start as sole traders and transition to a limited company as they grow.

Consider seeking advice from an accountant or business advisor to determine the best structure for you.

 

2. Registering Your Business and Understanding VAT

Once you’ve chosen a business structure, you’ll need to register it with the appropriate authorities. Here’s what you need to do:

  • Sole traders and partnerships: Register with HMRC for self-assessment tax returns.
  • Limited companies: Register with Companies House and obtain a Unique Taxpayer Reference (UTR) from HMRC.
  • VAT Registration: If your business turnover exceeds £90,000 (as of 2024), you must register for Value Added Tax (VAT). Even if your revenue is below this threshold, voluntary VAT registration can be beneficial, allowing you to reclaim VAT on purchases.
  • Employers’ Obligations: If you plan to hire staff, you’ll need to register as an employer with HMRC and set up PAYE (Pay As You Earn) for payroll taxes.

3. Setting Up a Business Bank Account

Keeping personal and business finances separate is essential for accurate accounting and tax compliance. Most high street banks offer business accounts with features tailored to startups. When choosing a bank, consider factors such as:

  • Monthly fees and transaction costs;
  • Online banking and accounting software integration;
  • Overdraft facilities and credit options.

4. Creating a Solid Business Budget

A well-thought-out budget helps prevent overspending and ensures financial stability. Key elements to include:

  • Fixed Costs: Rent, utilities, insurance, and salaries;
  • Variable Costs: Marketing, materials, and production expenses;
  • Revenue Forecast: Estimate your expected income based on market research;
  • Emergency Fund: Set aside money to cover unexpected expenses.

Use budgeting tools like Xero, QuickBooks, or FreeAgent to track your cash flow and expenses efficiently. We have experience with all platforms, but as a proud Xero partner, we cannot recommend it enough!

5. Understanding Tax Obligations

New business owners must understand their tax obligations to avoid fines and compliance issues. Key taxes include:

  • Corporation Tax: Limited companies pay corporation tax on profits (currently 19%–25%, depending on profit levels).
  • Income Tax: Sole traders and partners pay Scottish income tax rates on business profits.
  • National Insurance Contributions (NICs): Payable by sole traders and employers on behalf of employees.
  • Self-Assessment Tax Returns: Required for sole traders and company directors, with the annual deadline on 31 January.

Working with a qualified accountant can help ensure your tax affairs are in order and that you’re taking advantage of any available reliefs.

6. Securing Funding for Your Startup

Many startups require external funding to get off the ground. There are several options available:

  • Government Grants: Agencies like Scottish Enterprise and Business Gateway offer grants for innovation and growth.
  • Bank Loans: Traditional banks and alternative lenders provide startup loans.
  • Angel Investors and Venture Capital: High-growth startups can attract investors in exchange for equity.

Before seeking funding, ensure you have a solid business plan and financial projections to demonstrate viability. Lack of a strong business vision will not lead to strong results.

 

7. Managing Business Cash Flow

Poor cash flow management is one of the leading causes of business failure. To maintain healthy cash flow:

  • Invoice Promptly: Set clear payment terms and follow up on unpaid invoices;
  • Monitor Expenses: Regularly review your spending and cut unnecessary costs;
  • Negotiate with Suppliers: Secure favourable payment terms where possible;
  • Build a Cash Reserve: Maintain a buffer to cover short-term financial gaps.

Consider using accounting software to automate invoicing and cash flow tracking.

 

8. Seeking Professional Advice

Starting a business can be complex, and professional guidance is simply invaluable. Some key resources are:

 

Starting a business in Scotland is an exciting journey, but financial planning and compliance are crucial for long-term success. By choosing the right legal structure, understanding tax obligations, securing funding, and managing cash flow effectively, you can set your startup on the path to growth in the new year. Don’t hesitate to seek professional advice and use available resources to make informed financial decisions. It’s recommended to find a trusting business advisor or an accountant who specialises in helping startups thrive.

13 Essential UK Tax Deadlines for 2025/26: Stay Ahead and Avoid Penalties

Scared of the UK 2025 tax deadlines? Here is how to stay ahead and avoid the pinchy penalties!

The 2024-2025 financial year is coming to a close, and it’s your last chance to get your tax affairs in order! HMRC tax deadlines don’t wait around for anyone, and missing them can result in hefty penalties that impact both individuals and businesses.

Instead of wasting money on penalties, you could reinvest those hard-earned funds into your business, your pension, or even your next holiday.

Staying on top of these tax dates is crucial, whether you’re a self-employed individual, a small business owner, or a larger corporation. If handling finances feels overwhelming, consider contacting a tax professional, (like us!), who can ensure your filings are submitted correctly and on time.

To help you navigate the upcoming financial year 2025/26, here are the 13 key tax deadlines you need to know.

March 2025 – The Final Stretch of the Tax Year

2nd March 2025 – Self Assessment Late Payment Deadline

By this date, any unpaid Self Assessment tax for the 2023-2024 tax year will incur additional late penalties. If you missed the 31st January deadline, this is your last chance to settle your tax bill before HMRC applies a 5% surcharge on outstanding amounts. Penalties can reach up to £1,500 — don’t let this be an expensive mistake!

Top Tax Tip: Set a reminder and pay early to avoid unnecessary fines!

Another Top Tax Tip: Keep on top of your emails from your accountant – they’ll make sure you don’t miss due payments!

 

19th March 2025 – PAYE & NIC Payment Deadline

Employers must submit PAYE and NIC for the period ending 5th March 2025.

Top Tip: If you’re paying electronically, ensure payments clear by this date and that you received confirmation of the payment from your bank or HMRC.

31st March 2025 – Financial Year-End for Many Businesses

For many businesses, 31st March marks the end of the financial year 2024/25. This means:

  • Closing accounts for tax reporting,
  • Ensuring all invoices and expenses are logged,
  • Preparing for Corporation Tax filing.

Failing to prepare now can lead to unnecessary stress when the Corporation Tax deadline UK rolls around.

April 2025 – The New Financial Year Begins

5th April 2025 – End of the 2024/25 Tax Year

This is the final day to make use of any and all tax allowances and reliefs for the financial year, such as:

  • ISA contributions,
  • Pension contributions,
  • Capital allowances.

6th April 2025 – Start of the 2025/26 Tax Year

New tax regulations, thresholds, and rates will take effect from this date. Businesses and individuals must review updates from HMRC to ensure they remain compliant.

19th April 2025 – PAYE & CIS Tax Payment Due

Employers must submit PAYE & National Insurance Contributions for the period ending 5th April. If your business is part of the Construction Industry Scheme (CIS), ensure all tax returns are filed on time.

May 2025 – Key Tax Reporting Responsibilities

7th May 2025 – VAT Return & Payment Deadline

If your business is VAT registered, the VAT return deadlines require you to submit your return and payment for the quarter ending 31st March 2025.

All VAT-registered businesses must submit VAT returns digitally via MTD-compatible software. By 2026, most businesses will be required to use fully digital tax systems.

 

31st May 2025 – P60s Must Be Issued to Employees

Employers must provide P60 forms summarizing employees’ total earnings and deductions for 2024/25. Late issuance can result in penalties from HMRC.

July 2025 – Crucial Self-Employed & Payroll Deadlines

6th July 2025 – P11D & P11D(b) Filing Deadline

Businesses must report expenses and benefits provided to employees via P11D forms. These must be submitted to HMRC by 6th July to avoid penalties.

 

31st July 2025 – Second Self Assessment Payment on Account Due

If you pay tax via Self Assessment, this is the deadline for your second payment on account for 2024/25. Missing it could result in interest charges on overdue amounts.

 

October 2025 – Imperative Self Assessment Dates

5th October 2025 – Self Assessment registration

This date only applies for new self-employed individuals and company directors.

 

31st October 2025 –Paper Self Assessment

Most businesses file electronically now, but if you’re submitting a paper return, this is your deadline. HMRC is actively digitalizing tax services, so electronic filing is strongly encouraged.

 

January 2026 – The Winter Tax Rush!

31st January 2026 – Online Self Assessment

Winter is when accountants go into full tax-season mode, ensuring every Self Assessment deadline is met before the first payment on account for 2025/26. If you miss this deadline, expected penalties with big interest.

 

Other important deadlines you should be aware of

VAT Deadlines – Quarterly or Monthly

Usually, VATs are filed and completed quarterly as HMRC separates them like that by design. From an accountant’s perspective, every month will have a VAT deadline as different businesses and individuals will have different deadlines. Makes it more manageable for everyone.

 

How to Avoid Penalties and Stay Compliant

Failing to meet HMRC tax deadlines can lead to serious consequences, including:

  • Late filing penalties (starting at £100),
  • Interest on unpaid tax,
  • Surcharges on outstanding amounts.

 

To stay on top of these deadlines:

  • Automate payments where possible,
  • Set calendar reminders for key dates,
  • Work with an accountant to ensure compliance.

If you’re feeling overwhelmed, we’re here to help! Our team of expert accountants ensures your filings are submitted on time, avoiding penalties and maximizing savings. Get in touch today!

How To Read Your Payslip In Just 10 Minutes

Understanding your payslip is a crucial step in managing your finances and ensuring compliance with tax regulations. That is because a payslip provides a detailed breakdown of your earnings, deductions, and net pay.

This amount of information can seem overwhelming at first glance, but it doesn’t have to be difficult. Here you’ll learn not only how to read your payslip successfully in under 10 minutes, but also why should you make sure all your payslips are kept safely.

Summary

Payslip Importance

  • Why Keeping your Payslip Safe Matters

  • Who is Entitled to a Payslip?

Reading Your Payslip

  • Common Challenges When Reading a Payslip

  • Key Components of a Payslip

    • Name and Period
    • Employee Details
    • Payments
    • Deductions
    • This Month
    • Year to Date
    • Net Payment

Common Issues and Solutions

    • Tax Codes
    • Student Loan Requirements

Why Accuracy Matters

Check List

 

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Businessman leafing through wad of cash at desk

Salaries and Dividends: How to Pay Yourself as a Business Owner

Owning a business isn’t easy: you’re in charge of finding customers, building your brand, looking after your employees, managing funds… and that’s before you consider the fact that you have to sort out your own income too!

It’s fairly straightforward for sole traders and partnerships who can simply withdraw cash from their business.

However, things are a bit more complicated if you’re the director of a limited company as you’re technically an employee of the firm. This means that you can pay yourself a salary as well as dividends – but they’re not one in the same, as they’re subject to different types and rates of tax.

In short, the best way to pay yourself is by taking a modest director’s salary and supplementing your earnings with regular dividend payments. But what’s the most tax-efficient way to go about this so that you can maximise your earnings? Keep reading and we’ll talk you through it.Continue reading