A P11D form is where employers and directors of companies have to declare benefits to HMRC.
Whether you employ people in your business, or you’ve received benefits as a director, you’ll need to declare these benefits every year. The tax due on such benefits is then claimed by HMRC via tax codes via payroll.
Being self-employed you’re essentially both an employer and employee, so you should use the P11D form to report any benefits to HMRC as part of your annual Self Assessment.
What is a P11D form?
There are two forms you need to know about:
- P11D form – this is where you declare benefits in kind and you’ll submit one for each employee or director
- P11D(b) form – here you’ll summarise all the P11Ds you’ve submitted to show the total benefits in kind given by the business, and any Class 1A National Insurance contributions you’re due to pay for the year as an employer.
What benefits require a P11D form to be completed?
Benefits in kind are non-cash benefits, or perks, provided to a director or employee that aren’t included in their salary or wages. These are taxable benefits so need to be reported to HMRC, and you may need to pay National Insurance contributions on these benefits.
P11D benefits include:
- mileage payments
- car benefit or car fuel benefit
- vans available for private use
- health insurance
- interest-free loans, e.g. season ticket loans
- relocation expenses
- living accommodation
P11D exemption – what does not need to be included?
You don’t need to include any allowable business expenses on your P11D, such as:
- office supplies
- business travel expenses
- stock and materials
P11D deadline 2023
You have a legal obligation to report any expenses and benefits to HMRC at the end of the tax year.
The P11D deadline for the 2022-23 tax year is 6 July 2023 and the payment deadline is 22 July 2023.
Keep accurate records
It’s important to be on top of your bookkeeping and keep accurate records.
For your P11D form, you’ll need to keep copies of benefits-related records for three years from the end of the given tax years. Your records should include the date and details of every benefit, and how you worked out the amounts (copies of receipts if possible), and any payment you (or your employee) contributes.
How to submit your P11D
All P11D forms must be submitted online from 6 April 2023.
Check the government’s website for more guidance on completing the P11D forms.
If you’re payrolling benefits you need to register the benefits with HMRC online before the start of the tax year so HMRC knows that tax is being collected through payroll. However, please be mindful that not all benefits can be payrolled and would therefore still require a P11D.
It’s important to file your P11D form accurately and on time.
The P11D late filing penalties kick in if you miss the deadline by two weeks. After this you’ll be fined £100 each month (or part month) your form is late, for every 50 employees.
There’s also a penalty for making an incorrect return, or for deliberately submitting incorrect information. This penalty is a maximum of £3,000 for each form.
You could also receive a penalty for late payment. Read more about P11D penalties on the Gov.uk website.
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