P11Ds up to April 2026
A P11D is a form submitted by employers annually to HMRC for all members of staff that received benefits and expenses that HMRC deem taxable in the year. The types of benefits usually include:
- Company Cars, Vans, and Fuel.
- Accommodation.
- Low or interest free loans exceeding £10,000.
- Private health insurance.
- Professional memberships.
- Payments on behalf of an employee
Please note that this list is not exhaustive. For more information on which benefits could be taxable, please visit HMRC A-Z of benefits -https://www.gov.uk/expenses-and-benefits-a-to-z
The P11Ds are required to be filed to HMRC by the 6th of July of each year, for example for the 2023-2024 tax year the deadline for submission is 6th July 2024. This is irrespective of the company’s accounting period. The submissions must be done online.
As well as the P11Ds the employer is also required to submit the P11D(b) which calculates the employer Class 1a national insurance contributions which is due on the relevant benefits. The Class 1a national insurance contributions rate for 2023/2024 is 13.8%.
Do I provide any Trivial Benefits?
HMRC sets out a statutory exemption for trivial benefits. Under this exemption, if an employer provides a benefit to its employees, the benefit is exempt from income tax if the following conditions are satisfied.
- The cost of the benefit does not exceed £50, averaging is used if the benefit is offered to a group of employees.
- The benefit is not cash or a cash voucher.
- The employee doesn’t have a contractual obligation to the benefit.
- The benefit is not given as recognition of a particular service performed by the employee.
Please note if the company providing the benefit is close and the benefit is provided to a director the exemption is capped at a total cost of £300.
If any of the above conditions are not satisfied the benefit is reported as normal.
How could a PAYE settlement agreement (PSAs) help me?
A PSA is a form that allows employers to make a single payment to HMRC covering all income tax and NICs due on particular expenses or benefits provided to employees, meaning the employees do not pay the tax on the benefit, the employer does instead.
The employer must provide a contract to HMRC and have the contract agreed by the 6th of July following the end of the tax year in which the chargeable benefits were provided. The contract covers a brief description of what the PSA will include and only has to be renewed if the benefits provided change from the description.
Once the agreement has been agreed upon the employer must provide a detailed spreadsheet of the tax and NICs due, separating Scottish, Welsh and the Rest of the UKs taxpayers.
What can I include in my PSA?
HMRC states that for a payment to be included on a PSA it must be either minor, irregular, or impractical.
Minor - This could include but is not limited to incentive awards (Long-service), telephone bills or small gifts and vouchers.
Irregular - Irregular benefits and expenses are things that are not paid at regular intervals over the course of a tax year, for example weekly or monthly. They’re also things that employees do not have a contractual right to. These could include relocation expenses over £8,000 or, use of a company holiday property.
Impractical - Impracticable expenses and benefits are things that are difficult to place a value on or divide up between individual employees. Examples of impracticable expenses and benefits include shared cars, personal care expenses or staff entertainment that isn’t exempt.
Please note that you do not have to include trivial benefits in a PSA.
What cannot be included?
HMRC will not accept forms of benefits such as wages, high-value benefits like company cars or any form of cash payments such as bonuses.
What are my Key Deadlines for P11Ds and PSAs?
The Deadlines for P11Ds are summarised below:
Report expenses and benefits - 6 July
Give your employees a copy of the information - 6 July
Report expenses and benefits - 6 July
Pay Class 1A National Insurance - 22 July (19 July if paying by cheque)
The Deadlines for PSAs are summarised below:
Applying for a PSA - 5 July
Pay Class 1A National Insurance and Tax - 22 October (19 October if paying by cheque)
Upcoming Changes to the reporting of P11D benefits
From April 2026 the payrolling of benefits will become mandatory. For more details on these changes please clickhere.
What should I do next?
If you would like to discuss your reporting responsibilities regarding taxable benefits please contact Jess Gray, our Business Tax Advisor, jgray@critchleys.co.uk
Critchleys Clients: If you have specific questions, don't hesitate to get in touch with your Critchleys contact directly.