The P11D form is used to report benefits in kind. These are items or services which you (or your employees) receive from your company in addition to your salary.
Common items which need to be reported on a P11D form are:
- Company cars
- Private healthcare
- Assets provided to the employee that have significant personal use – for instance if accommodation was provided
- Interest free loans (e.g. to pay for a train season ticket)
- Self assessment fees paid by the company
- Non business travel expenses
- Non business entertainment expenses
- Overdrawn director’s loan accounts
Items which don’t need to be reported on a P11D form are:
- Business travel (including subsistence costs associated with this)
- Business entertainment expenses
- Credit cards used for business purposes
- Fees and subscriptions
As benefits in kind effectively increase your salary there may be national insurance contributions to be paid on them. These contributions are paid by the company, not the employee.
P11Ds are submitted by the employer, not the employee. However, in many small director only company these are effectively the same thing.
There will also be a P11D(b) to be submitted which is a summary of all the individual P11Ds submitted for each employee.
If you don’t provide any benefits in kind then you are not required to submit a P11D. However, if HMRC have requested that you do so, for instance by sending you a reminder, then it would be wise to submit a nil return so that you don’t incur any penalties.
P11Ds must be submitted by 6 July following the end of the tax year. For example a P11D for the tax year ending 5 April 2018 must be submitted by 6 July 2018.
If you miss the deadline of 6 July, you won’t incur penalties straight away. However, if you still haven’t submitted your P11D (if required) by 19 July, the company will incur fines of £100 per month per 50 employees plus interest on the unpaid national insurance.