Form P11d (Expenses and Benefits): Filing deadline is 6th July
In a nutshell, the P11d is a tax form filed online by employers for each director and each employee, to report benefits provided, and expenses made, to employees by employers that are not put through the payroll.
The company is liable to pay class 1a national insurance contributions on the value of benefits provided by 19th July. Employees pay tax and employee national insurance on the value of the benefits. This is collected through the payroll or via your self-assessment tax return.
There are 14 categories covered in Form P11d, including Cars and car fuel, mileage allowances, living accommodation, medical health (i.e. physio appointments) and qualifying relocation expenses payments, to name a few. Click here for full details.
There are a few exceptions that don’t need to be reported including business travel, eye tests (and screen glasses if needed), phone bills, business entertainment expenses and uniforms and tools bought for work.
Working out whether you need to report a taxable benefit at all can be complicated and we can help you to decide what needs to be reported.
For example, if the company pays your physio costs as you have a bad back caused by sitting too long at your computer. This may seem like a company expense and a lot of employers would agree to pay this for their employee, however the cost will still be treated as a taxable benefit and should be reported on the P11d form.
Another example would be an Apple watch – even though it may be used for work, there is inherently a ‘duality of purpose’ as you can also use this for telling the time personally. Therefore, it would be treated as a P11d item and should be reported. If anything purchased for your company can also be used personally then generally it would be reportable on form P11d and should be declared.
If you are unsure as to whether a particular expense should be reported on form P11d do get in touch and we can look into it for you.
We will be in contact with all of our Limited company directors over coming weeks to prepare your P11d’s if required. Please let us know if you have benefits to report and haven’t yet heard from us.