P11D Forms – What Employers Need to Know and an Important Change from 6th April 2023
- Apr 5, 2023
- 3 min read
Updated: May 6
What is a P11D?
P11D is a tax form that employers use to report the value of any taxable benefits and expenses that they have provided to their employees or Directors during the tax year.
Taxable benefits and expenses can include things like company cars, private medical insurance, travel expenses, and certain types of accommodation.
The P11D form is used by HM Revenue & Customs (HMRC) to calculate how much tax and National Insurance contributions an employee or director should pay on these benefits.
Who needs to file a P11D?
Employers are required to submit a P11D form for each relevant employee or director that receives taxable benefits and expenses.
Freelancers and contractors should also consider if they need to make a declaration.
When do I need to file a P11D?
P11D forms need to be submitted by July 6th following the end of the tax year (which runs from April 6th to April 5th). They must also provide each employee or director with a copy of their P11D by the same deadline.
What are the changes from 6th April 2023?
From 6th April 2023, employers will no longer be able to submit paper P11D and P11D(b) returns to HMRC. All returns must be made online. This includes lists.
From 6th April 2023, if an employer submits a paper P11D or P11D(b) (original or amendment) the form will be rejected on the basis that it has not be submitted to HMRC in the prescribed manner.
The employer or agent will be notified of the rejection and sign-posted to the correct process.
HMRC is changing legislation to mandate the submission of original P11D and P11D(b) returns online through one of the following:
– PAYE Online for Employers – Payroll software recognised by HMRC
For employers who need to submit up to 500 P11D and P11D(b) returns, the free HMRC PAYE online services can be used. For anything more, 3rd party software is required.
HMRC will publish electronic versions of the P11D and P11D(b) forms on GOV.UK, which will enable employers and agents to submit amended forms electronically from 6th April 2023.
No software changes are required, as this electronic form is not part of the current online services.
What needs to be included on a P11D?
Any items the company pays for and that the employee benefits from must be included on the P11D form. Expenses and benefits that need to be reported to HMRC include:
Company Cars
Car Fuel
Vans & Private Fuel
Mileage Allowances
Living Accommodation
Relocation Expenses
Meals
Telephone
Medical Care
Income Tax
Childcare
Goods or Services
Personal Incidental Costs
Private Expenses
Loans (including overdrawn director’s loan accounts)
Round Sum Allowances
Shares
Assets
Annual Social Functions
Vouchers, Credit Cards
What are the penalties for late filing?
As with most tax filings, HMRC will issue you with penalties if you file late or incorrectly.
If you miss the 6th July deadline, you won’t incur penalties straight away – you have about a fortnight to put things right and file.
If you haven’t filed your P11D after July 19th, your company (not you personally) will incur fines of £100 per month (or part month) per 50 employees.
If you still haven’t filed by November, HMRC will send you a reminder, along with details of all the penalties you’ve accrued up until then.
If your P11D is incorrect, you could also face fines – but only if HMRC believes you deserve them.
If your mistake was genuine and HMRC believes you took reasonable care before filing, you might not face any fines.
However, penalties of 30%, 70% or 100% of the owed tax can be applied if HMRC believes you acted carelessly, deliberately misled them, or attempted to conceal your true liabilities.
Contact our Uncommon Accountants for More Information
If you have any questions about P11D forms and what should be included in your return, please get in touch with our Uncommon Accountants today who will be happy to help. Call us on 0333 242 3743, email support@theuncommonpractice.com or submit an enquiry.
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