Are you providing benefits to your employees and have not yet completed form P11D and form P11D(b)? Please read on.

Where your company provides benefits to employees, these must be reported to HMRC in the format of forms P11D. Class 1A National Insurance is payable, by the employer, on these benefits at 13.8% (2023-24 tax year) and must be reported to HMRC on form P11D(b).

What is a benefit?

Common examples of benefits provided to employees may be:

• Private health insurance
• Company car and fuel
• Company van and fuel
• Living accommodation
• Assets paid for by the company and transferred to an employee/Director at below market value
• Low or interest free loans

What deadlines should I be aware of?

As an employer, you have until 6th July, following the end of the tax year, to carry out the following:

1. Submit form P11Ds online to HMRC
2. Provide employees with a copy of their form P11D
3. Advise HMRC of the total amount of Class 1A National Insurance payable via form P11D(b)

Following submission of the forms, the employer then has until 22nd July (19th  July if paying by cheque) to pay any Class 1A National Insurance owed on benefits.

Penalties of £100, for every 50 employees, are charged for late submission of forms P11D with additional penalties of up to £3,000 per form also applying where errors are made. Therefore, care should be taken.

What if I have no benefits to report?

If you receive a formal notice from HMRC to file form P11D, but have no benefits to report, it is important that a nil return is filed with HMRC to satisfy your obligations and avoid any penalty charges.

If you receive no communication from HMRC in relation to filing form P11D and have no benefits to report, no action is required.

How can Drummond Laurie assist?

All Drummond Laurie clients will now have received communication regarding their 2023-24 P11D forms, where we have assisted in the previous year. We do encourage you to action this information request as soon as possible.

If you have not heard from us and would request our assistance in completing your form P11D and form P11D(b), for the 2023-24 tax year, please do contact us as soon as possible.

Please note, as mentioned previously on our blogs, forms P11D and P11D(b) will soon become a thing of the past with Payrolling Benefits becoming mandatory from 6th April 2026. Our Payroll Team are on hand to assist with this process; however we encourage you to familiarise yourself with these changes. Please reach out to your Drummond Laurie adviser if you have any queries.

If you’d like more information on the changes, please contact the team at hello@drummondlaurie.co.uk