What is an P11D?

Employers must let HMRC know about taxable expenses or benefits they provide to their employees. They can either do this via their payroll scheme or online at the end of the tax year. Employers must also report how much Class 1A National Insurance they owe on all expenses and benefits provided to employees, and pay any outstanding National Insurance due. Each expense or benefit is calculated differently.

If an employer reports employee expenses and benefits through their payroll software, they pay tax on them throughout the year. There’s no need to report expenses and benefits for each employee at the end of the tax year if all of their expenses and benefits have been “payrolled”. However, at the end of the tax year (5 April), they must still report the Class 1A National Insurance they owe by submitting an online form called a P11D(b).

If an employer does not pay expenses and benefits through payroll, they must fill in a P11D and submit it to HMRC at the end of the tax year. A P11D must be completed for each employee who has received taxable expenses or benefits that were not payrolled. They must also submit a P11D(b) form to HMRC at the end of the tax year for any Class 1A National Insurance owed. Those with fewer than 500 employees fill in and submit the forms through HMRC’s PAYE Online Service.

If you’re an employee, your employer might give you a copy of your P11D if they used it to tell HMRC about benefits in kind that you received (eg a company car or interest-free loan). They don’t have to do this, but they must tell you how much each benefit is worth. You may not be given a P11D if your employer deducts via payroll the tax you owe on your company benefits.