The purpose of all the PAYE forms, such as the P45, P60 and P11D are to tell HMRC everything they need to know about your income, expenses and allowances. In this post we are going to take a closer look at HMRC’s P11D form and convert it into intelligible language.
The HMRC P11D is designed to report on benefits in kind. Items or services which employees or directors may receive from their company/employer (in addition to salary). These are commonly referred to as perks. Common employee benefits include items such as private healthcare, an interest free loan for a train season ticket, a company car or mileage allowance. The yearly P11D form allows these benefits to be reported and noted to HMRC. As such perks increate your salary, there is sometimes further National Insurance contributions to be paid (by the employer, not the individual). There are strict rules which apply, determining the individual values.
Who needs to complete a P11D form?
P11Ds must be completed for company directors or employees who earn over £8,500 per year. The P11Ds are completed by the company, not the employee – however if you are a contractor or freelancer then you must do so yourself of course.
Is there a deadline for P11D submissions?
Yes, P11Ds must be filed by July 6th following the tax year. For example, a P11D for the tax year April 2016-April 2017 needs to be filed by July 6th 2017.
There are 14 sections on the P11D:
Section A – Assets transferred
Section B – Payments made on behalf of the employee
Section C – Credit cards and vouchers
Section D – Living Accommodation
Section E – Mileage allowance
Section F – Cars and fuel
Section G – Company vans
Section H – Beneficial loans
Section I – Medial Health
Section J – Qualifying Relocation payments
Section K – Services supplied
Section L – Assets placed at employee’s disposal
Section M – Other items
Section N – Expenses payments