If you’re an employer who provides benefits or expenses to your employees, your business may have to report these details to the HMRC no later than 6th July 2023, or you may receive a penalty.

In this blog, we explain what the P11D deadline actually means, what you need to include in the form, and what you can expect if you submit it after the deadline passes.

What is the P11D Deadline?
The P11D deadline is the date by which employers must submit their P11D forms to HM Revenue and Customs (HMRC). This year, the form must be provided to HMRC no later than 6th July. The P11D form is used to report any taxable benefits and expenses provided to employees during the previous tax year.

Who need to complete the P11D form?
If your employees receive benefits in kind, you as an employer are required to submit a P11D form. This also applies to company directors and those who are self-employed. Each relevant employee or director should have their own P11D form, however, if there are no taxable benefits to report, then you won’t have to complete the form.

What are taxable benefits or benefits in kind?
Taxable benefits (or benefits in kind) are any benefits or expenses that an employer provides to an employee that are not considered part of their salary. These benefits are subject to income tax and National Insurance contributions, just like regular income.

Employers must pay Class 1A National Insurance contributions on the total value of taxable benefits provided to employees, which often include things like company cars, medical insurance, and other significant personal benefits.

What is the tax year?
The tax year runs from April 6th of one year to April 5th of the following year. The UK tax year is divided into two parts: the first part is from April 6th to April 5th of the following year, and the second part is from April 6th of the following year to April 5th of the year after that. During the tax year, individuals and businesses are required to report their income and any taxable benefits they have received.

This information is then used to determine how much income tax and National Insurance contributions are owed for that tax year. Employers should always be made aware of the tax year dates, as they are used to determine filing and payment deadlines, like the P11D.

Reporting benefits on the P11D form
It’s essential to accurately report benefits and expenses on the P11D form. This applies not only to employee benefits but also to any benefits provided to the self-employed. If you are a limited company and you give benefits to directors or shareholders, you must also report these on the P11D form.

One of the most common employee benefits that must be reported on the P11D form is the provision of a company car. If an employee is provided with a company car that is available for private use, they will be subject to a taxable benefit. The taxable benefit amount will depend on the list price of the car, its CO2 emissions, and the vehicle’s fuel type.

Another common taxable benefit that must be reported on the P11D form is the provision of medical insurance. If an employee is provided with medical insurance as part of their employment package, the cost of the insurance will be subject to income tax and National Insurance contributions.

Avoiding late filing penalties
If you miss the P11D deadline, you may be subject to late filing penalties. These penalties can be substantial, so you must make sure that you file your P11D form on time. If you are required to file a self-assessment tax return, you must include any taxable benefits and expenses on that return, too.

To avoid late filing penalties, it is important to make sure that you file your P11D form on time. You should also ensure that all of the information on the form is accurate and up-to-date. If you are having trouble filing your P11D form, it’s a good idea to consider using a professional tax advisor or accountant to help you.

In summary
In conclusion, employers need to understand the P11D deadline and their reporting obligations for taxable employee benefits. Failure to file the P11D form on time can result in substantial late payment penalties.

By reporting benefits accurately and on time, employers can ensure compliance with HMRC regulations and avoid potential late submission penalties. If you need any help with the P11D deadline or further information, please contact us directly.