Reminder: Employer P11D Returns/Reminder to employers to report benefits in kind

All businesses, regardless of size, are required to report taxable benefits in kind and certain expenses provided to employees and directors. This is done annually through a P11D form submitted to HMRC where the business hasn’t formally agreed with HMRC to do this through payroll instead.

What is a P11D form?

A P11D form is required for every employee and director in receipt of benefits in kind. In family businesses, benefits in kind provided to family members are also reportable.

Typical items this applies to include:

• Company vehicles
• Business-provided accommodation
• Medical benefits
• Loans (including overdrawn director’s loan accounts)
• Commuting costs
• Staff entertainment
• Staff gifts
• Payment of personal bills

The deadline for submitting the 2025/26 forms to HMRC is 6 July 2026. Forms must also include a declaration of the National Insurance Contributions (NIC) due, with the NICs becoming payable by 22 July 2026 if you are paying electronically.

Penalties of £100 per month are charged for late submission of the forms for every 50 employees and additional penalties of up to £3,000 per form can also apply where errors are made. It is therefore important that the P11D forms are completed correctly and submitted to HMRC on time.

The rules on how employment benefits in kind are taxed can be complicated and completion of P11Ds can be difficult, especially for businesses with a number of employees and different benefits to declare.

Mandatory reporting of benefits in kind through payroll is being introduced on 6 April 2027 for the 2027/28 and subsequent tax years. Further communications will be issued by Armstrong Watson on this important change in due course.