What is a P11d and do I need to complete one?
By PaperRocket Accounting, May 10 2018 10:36AM
Whilst the 2017/18 tax year may have recently ended, the filing obligations for it continue, not only with personal tax returns for the year, but also with the filing of 2017/18 P11ds. But, what are P11ds, and do you need to complete one?
What is a P11d, and what do I need to include on it?
A P11d is a form used to report any benefits in kind. Most items or services that you or your employees receive from the company in addition to your salary, or any expenses that have been put through the company that are not wholly, exclusively and necessarily for the purpose of the business, will be deemed to be a benefit in kind. Some of the most common examples are:
• Private healthcare
• Gym membership
• Company cars
• Interest free loans (over £10,000)
• Assets provided to an employee with significant personal use
• Non business travel/entertainment expenses
What do I not need to include on the P11d?
Before April 2016, P11ds had to include any company expenses that had been paid for personally by an employee and then reimbursed to them during that tax year. As you can imagine, for PSCs with directors who may have personally paid for many expenses on behalf of the company and then reimbursed in bulk, this was a rather arduous task!
However, thankfully, since April 2016, an exemption system has been introduced meaning that the majority of these expenses no longer need to be included.
Do I need to file a P11d?
Firstly, it is the employer who is responsible for filing a P11d, not the employee (although if contracting through your own company, this will fall to you). If you had a PAYE scheme open at all during the tax year in question then you will be required to submit a P11d for the year. Even if there have been no benefits in kind during the year, you will still need to file a ‘nil’ P11d.
What will I need to pay?
As a benefit in kind effectively increases your salary, there may be National Insurance contributions payable on them. This currently stands at a rate of 13.8% and will be payable by the employer. However, what this 13.8% will be charged on depends on the benefit, so it is always advisable to have an accountant assist with the completion of this form.
When is it due?
Regardless of your company accounting year, all P11d filings are dependent on the tax year. So, all P11ds must be filed by 6th July following the end of the tax year. Any payment due must reach HMRC by the 22nd July (19th July if paying by cheque).
If your P11d is late, you will receive a penalty of £100 per 50 employees for each month (or part month) it is late. If payment is late, you will also receive penalties and late payment interest on that.
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