Key facts
- P11D forms must be filed with HMRC by 6 July following the end of the tax year.
- Employers must also pay Class 1A NIC at 15% on most benefits by 22 July (19 July if paying by cheque).
- Common BIKs include company cars, fuel, private medical insurance, and interest-free loans over £10,000.
- Employers can avoid P11D filing by payrolling benefits — taxing them through the payroll in real time.
- A copy of the P11D (or the information on it) must be given to the employee by 6 July.
What Is a P11D?
A P11D is the form used by employers to report taxable benefits in kind (BIKs) and reimbursed expenses provided to employees and directors during the tax year. HMRC uses the information to adjust employees’ tax codes and ensure the correct amount of tax is collected.[1]
Benefits in kind are non-cash rewards that have a monetary value and are treated as part of the employee’s taxable income. If they are not taxed through the payroll in real time, they must be reported on a P11D after the year ends.
Common Benefits in Kind
The most frequently reported benefits include:[2]
| Benefit | How It Is Taxed | Typical Value Reported |
|---|---|---|
| Company car | Based on list price, CO2 emissions, and fuel type | Percentage of list price (4%–37% for 2026/27) |
| Car fuel benefit | Fixed multiplier (£29,200 in 2026/27) × car benefit percentage | Applies when employer provides fuel for private use |
| Private medical insurance | Cost to the employer of providing the cover | Annual premium paid by employer |
| Interest-free loans | Taxable if total loans exceed £10,000 at any point in the year | Interest at official rate (3.75% from 6 April 2026) minus any interest paid |
| Living accommodation | Annual value plus additional charge for properties over £75,000 | Varies by property |
Key Deadlines
The P11D process has strict deadlines:[1]
| Deadline | Action |
|---|---|
| 6 July | File P11D and P11D(b) forms with HMRC |
| 6 July | Give copies of P11D information to employees |
| 22 July | Pay Class 1A NIC to HMRC (19 July if paying by cheque) |
Key point: The P11D(b) is a separate return that accompanies the individual P11D forms. It declares the total Class 1A NIC due on all benefits provided to all employees. Even if you are payrolling some benefits, you still need to file a P11D(b) for the Class 1A NIC on those payrolled benefits.
Class 1A National Insurance
Employers must pay Class 1A NIC at 15% on the value of most benefits in kind. This is an employer-only charge — the employee does not pay NIC on benefits (they pay Income Tax instead). Class 1A NIC is due by 22 July and is declared on the P11D(b).[2]
Some benefits are exempt from Class 1A NIC, including certain employer pension contributions and benefits that are already subject to Class 1 NIC through the payroll (such as payrolled benefits where Class 1 NIC applies).
Payrolling Benefits
Since April 2016, employers have been able to payroll most benefits in kind — meaning the tax is calculated and deducted through the payroll each pay period, rather than being reported on a P11D after the year ends.[3]
To payroll benefits:
- Register with HMRC before the start of the tax year (via the employer’s PAYE Online account)
- Add the benefit value to the employee’s taxable pay each pay period
- Deduct Income Tax on the benefit through the payroll
- No P11D is needed for payrolled benefits (but you still file a P11D(b) for Class 1A NIC)
Tip: Payrolling benefits is becoming increasingly popular and HMRC is encouraging all employers to adopt it. From April 2026, payrolling of benefits will become mandatory for most benefits in kind. Employers should prepare by registering for payrolling and updating their payroll processes before this deadline.
Exempt Benefits
Certain benefits do not need to be reported on a P11D because they are specifically exempt from tax:
- Employer pension contributions
- One mobile phone per employee
- Staff canteen meals (available to all employees)
- Trivial benefits worth £50 or less
- Cycle-to-work scheme bicycles and safety equipment
- Work-related training and qualifications
- Workplace nursery provision
Frequently Asked Questions
What is the difference between a P11D and payrolling benefits?
A P11D is the traditional method: the employer reports benefits after the tax year ends, and HMRC adjusts the employee’s tax code for the following year. Payrolling benefits is the modern alternative: the employer calculates the tax on the benefit each pay period and deducts it through the payroll in real time. Payrolling removes the need to file P11D forms for the benefits being payrolled, but the employer must still report Class 1A NIC.
What benefits are exempt from P11D reporting?
Certain benefits are exempt and do not need to be reported on a P11D. These include employer pension contributions, meals in a staff canteen available to all employees, work-related training, one mobile phone per employee, cycle-to-work scheme bikes (within limits), and trivial benefits worth £50 or less. The full list is in HMRC’s guidance on exempt benefits.
What happens if the P11D is filed late?
HMRC can charge a penalty of £300 per 50 employees (or part thereof) for each month the P11D return is late, for a maximum of 12 months. There are also penalties for incorrect returns. Additionally, late payment of Class 1A NIC incurs interest and potential surcharges.
Do directors of small companies need to file P11D forms?
Yes, if they receive benefits in kind. Even a sole director of a one-person limited company must file a P11D for any taxable benefits they receive from the company, such as a company car or private medical insurance. The company must also pay Class 1A NIC on those benefits.
Further Reading
- Payroll Year-End Checklist — where P11D filing fits in the year-end timeline
- P60 Explained — the other key year-end document for employees
- Final FPS & Year-End Returns — the RTI returns that precede P11D filing
- PAYE for Single Directors — director-specific BIK considerations
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