P11D Form
A P11D is the form HMRC requires employers to complete and submit detailing the cash equivalent of any benefit in kind or expenses which have been paid out to directors (or employees) over the course of the preceding tax year.
What is a P11D Form?
A P11D is the form HMRC requires employers to complete and submit detailing the cash equivalent of any benefit in kind or expenses which have been paid out to directors (or employees) over the course of the preceding tax year.
Who should complete a P11D form?
The P11D form is to be filled out by the employer.
Any employee who has received benefit in kind (BIK) or had any expenses paid to them during the previous tax year should also receive a copy of the P11D from their employer once completed.
Only employees whose salary exceeds £8,500 per annum and who have received any BIK or expenses should be considered when completing a P11D.
The P11D only applies where the BIK or expenses paid out, have been done so through the company’s payroll.
Employers are required to have filed the P11D form with HMRC by the 6 July each year – for the previous tax year – this is also when employees or directors whose expenses are included in the P11D should receive a copy of the form.
It is important for employees who receive a P11D copy to keep it on record in case they are eligible to apply for a tax return.
In addition to a P11D, you may have seen a P11D(B) referenced before.
The P11D(B) is simply a supplementary form which should be submitted to HMRC by an employer to list the individual P11D forms that have been completed for their employees.
What's in a P11D form?
A P11D is designed to cover all areas whereby an employer may have provided a company director or an employee with any one of a large range of benefits in kind or expense payments such as company cars, rail fare loans, travel expense or many others.
The current form has 14 sections to consider ranging from A to N as outlined below.
A - Assets transferred (cars, property, goods or other)
B - Payments made on behalf of employee
C - Vouchers or credit cards
D - Living accomodation
E - Mileage allowance payments not taxed at source
F - Cars and car fuel
G - Vans and van fuel
H - Interest free or low interest loans
I - Private medical treatment or insurance
J - Qualifying re-location expenses or benefits payments
K - Services supplied
L - Assets placed at the employee's disposal
M - Other items (including subscriptions and professional fees)
N - Expenses payments made on behalf of the employee
How to prepare
As a P11D form has tax implications, it is imperative for the employer to carefully and attentively complete each section without providing any faulty or inaccurate information.
To prepare for the P11D, ensuring that as a company there are sufficient tracking and monitoring systems in place to record what BIK and expense claims are fulfilled and to whom is essential.
Keeping the relevant, accurate records means that when post-tax-year time rolls around, your P11D completion should be completely headache free.
