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What should be included on the P11D?

The P11D form collects employee benefits data at the end of each tax year. There is no extended deadline for this submission from HMRC – for the 2021/22 tax year, the P11D must be filed by 6 July 2022, and that’s fast approaching.

What does a P11D report?

Filing benefits in kind (BIK), extra services and items that employees are given in addition to their salary, employers should also provide a copy to employees and tell HMRC the amount of National Insurance owed by 6 July. Any tax due must be paid to HMRC by 22 July each year. These expenses and benefits include:

  • Company cars
  • Loans for rail season tickets
  • Other loans
  • Health insurance
  • Assets provided to an employee that have significant personal use
  • Self Assessment fees paid by the company
  • Non-business travel expenses
  • Non-business entertainment expenses

Covid-19 adjustments

The taxable value of some medical benefits may have changed for 2021/22, due to the pandemic. Where certain specified medical services were not available, some medical providers made refunds to employers. The reportable value of the BIK is the amount paid in the year less any refund, regardless of when it is received.

Where employees were given equipment to enable them to work from home during the pandemic, exemptions from work-related benefits are only available for insignificant private use of the asset. In May 2020, HMRC announced a temporary exemption from tax and NIC on home office equipment bought by employees and reimbursed by employers. This exemption expired at the end of the 2021/22 tax year.

It is possible to reduce the BIK charge if a vehicle wasn’t used during a lockdown, as long as the period is a minimum of 30 consecutive days. The car benefit is reduced in proportion to the number of days when the car is unavailable. HMRC requires verification that the employee had no access to the car, for example, the keys were handed back to the employer.

Electric vehicles

The range for Ultra Low Emission Vehicles (ULEV) is now reportable on the P11D. The submission includes the year of registration and the distance the car can travel on electric power before needing to be recharged. There is further guidance from HMRC here.

What is not included on the P11D?

Items such as business travel, entertaining expenses, business credit cards and subscriptions/fees are not recorded on the P11D.

What is the P11D(b) form?

The P11D(b) is an associated form that employers submit, summarising the detail of the P11D form completed and the Class 1A National Insurance owed for each employee. 

P11D penalties

If you miss the 6 July deadline, you have about a fortnight to put things right. After that, your company will incur fines of £100 per month (or part month) per 50 employees. This will be followed by reminders and details of the ongoing penalties. If HMRC believes you acted carelessly, deliberately misled or attempted to conceal your liabilities, penalties of 30-100% of the tax owed could be imposed.

Keeping your records up to date and reconciling your accounts frequently will help the smooth and accurate submission of your P11D. If you have any questions about what should be included on your P11D, the experts at CRM can help. Please call us on 01865 379272.

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