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:
- Review all benefits provided during the 2024/25 tax year.
- Check which benefits are taxable and reportable.
- Calculate the value of each benefit (you may need support from your payroll software or accountant).
- Use digital tools to prepare and submit the P11D and P11D(b) forms to HMRC.
- Provide each employee with their P11D copy by 6 July 2025.
- 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.
