The P11D is a form to be completed by employers detailing the cash equivalents of any benefits and expenses provided during the tax year. These include the use of a company car, interest free loans and private healthcare provided to employees. Any benefits and expenses paid to family members must also be declared in the form.
What kind of expenses and benefits are included?
Private medical insurance
Interest free and low interest loans
Assets provided to employees with significant personal use
Non-business travel / entertainment expenses
What will I need to pay?
National insurance is payable on any benefits paid for by the company and on behalf of the employee, as these are effectively treated as earnings. National insurance on benefits is currently payable at 13.8% by the employer.
Employers are required to calculate the cash equivalents and report these to HMRC by filing the P11D by the 6 July following the end of the tax year.
Penalties shall start to be applied if HMRC doesn’t receive the completed form by 19 July.
Penalties for late submission
If the submission of the P11d form is not made on time, penalties are applied for each month (or part month) the return remains outstanding. These penalties are levied at £100 per 50 employees per each month (or part month).
Records of all expenses and benefits provided to employees must be kept. HMRC may require evidence of how you have accounted for each expense or benefit.
How can Nexus help?
As specialist contractor and freelance accountants, our team has years of experience in the contractor market. If you would like to find out more about the P11d submission, please call our help desk on 0161 791 1674.