A P11D is for each employee in receipt of benefits in kind and expense payments.

By the 6 July, following the end of the tax year, employers should have submitted your P11D forms online to HMRC, given your employees a copy of the information on your forms and told HMRC the total amount of Class 1A National Insurance you owe on form P11D(b) (then payable by 22nd julyu latest).

Here are 6 common non-taxable benefits that are sometimes seen incorrectly included on a P11D

  1. Annual Christmas parties or similar functions, costing up to £150 per head. Multiple functions are added together for the purposes of the £150 limit and any that are not wholly within this are taxable.
  2. One mobile phone IN THE NAME OF THE COMPANY. Reimbursed private phone bills are completely different.
  3. Childcare vouchers (within certain limits, depending on tax rate of employee)
  4. Annual health screening/medical check-up – ensure company is contracting with provider
  5. Subsidised canteen available to all staff
  6. “trivial” benefits, e.g. turkey at Christmas (£50 limit, not cash or equivalent)

If you have any questions about what should be included on your employees P11D then please call us on 01865 379272.

Sage Accountant Partner Logoiris kashflowFreeagent