P11D Guide

Understand what a P11D is, who must file it, which expenses to report, key deadlines, and how PAYE compliance checks work.

P11D Guide: What It Is, Who Files It, and What to Include

The P11D is a form that employers must submit to HMRC to report certain expenses and benefits provided to employees and directors. If your business provides perks like company cars, health insurance, or interest-free loans, this form is how you declare them.

Understanding how the P11D works is essential to staying compliant with tax law. Mistakes can trigger penalties or even a PAYE compliance check. Here's everything you need to know in one straightforward guide.

What Is a P11D?

A P11D is a statutory form used to report benefits in kind—non-cash perks provided to employees or company directors that have monetary value. These benefits may not be part of salary, but HMRC still wants them declared for tax purposes.

Examples include:

  • Company cars

  • Private health insurance

  • Interest-free loans over £10,000

  • Travel and subsistence expenses (unless fully reimbursed)

  • Gym memberships paid by the employer

The form is submitted by the employer, not the employee, and HMRC uses it to calculate any additional tax or Class 1A National Insurance contributions due.

What Needs to Be Included on a P11D?

Any benefit or reimbursed expense that gives a personal benefit to an employee and isn’t already taxed via payroll must be declared. This includes physical goods and services, but also financial benefits like loans.

Common items to include:

  • Company car and fuel benefit

  • Private medical insurance

  • Assets transferred to employees

  • Living accommodation

  • Low or zero-interest loans

  • Relocation expenses over £8,000

  • Non-business travel and entertainment costs

Each benefit must be itemised, with a value assigned using HMRC’s calculation rules. It’s not just the value paid—it’s the taxable value that matters, which may be adjusted based on usage or contributions by the employee.

How Do I Know If I Need to Submit a P11D?

You need to submit a P11D for every employee or director who received benefits in kind during the tax year, unless you’ve already taxed those benefits through payroll.

If you didn’t provide any benefits, you don't need to submit a form—unless HMRC has specifically asked for one. If you've received a P11D(b) reminder and no benefits were provided, you should submit a ‘nil return’ to confirm.

When Is the Deadline?

The P11D deadline is 6 July following the end of the tax year. So for the 2024/25 tax year, your P11D must be submitted by 6 July 2025.

If you miss this deadline, you could be fined £100 per 50 employees per month until the form is submitted. Payment of Class 1A National Insurance on reported benefits must be made by 22 July (or 19 July if paying by post).

Who Needs to File a P11D?

Employers are responsible for filing P11Ds—not employees. This includes limited companies where directors receive benefits.

Each employee or director who has received reportable benefits gets their own P11D form. Additionally, the employer must submit a P11D(b) form to summarise the total value of benefits and calculate the Class 1A NICs owed.

Self-employed individuals do not need to submit a P11D for themselves, because they are not classed as employees of their business.

Do You Need to File a P11D If You Are Self-Employed?

No. If you are a sole trader or in a partnership and are not employing anyone else, you do not submit a P11D. The P11D is only for employers to report employee or director benefits.

However, if your business employs staff or you operate through a limited company and give yourself or others benefits in kind, then yes—a P11D must be submitted for each person receiving those benefits.

What Expenses Are Excluded from the P11D Form?

Some business expenses don’t need to be reported if they’re "allowable" and reimbursed on an exact basis. These include:

  • Business travel (excluding commuting)

  • Subsistence during business travel

  • Business entertainment

  • Business phone use

  • Professional subscriptions relevant to the job

These are considered “non-taxable” if reimbursed properly, so they’re excluded from the P11D form.

Also, if you’ve agreed a PAYE Settlement Agreement (PSA) with HMRC to cover certain minor, irregular or impractical-to-value benefits, you don’t need to report those on a P11D either.

How to Submit a P11D Form

You can submit your P11D and P11D(b) forms online using HMRC’s PAYE Online Service or compatible payroll software.

To submit:

  1. Log in to your HMRC employer account

  2. Complete a separate P11D for each employee or director with benefits

  3. Submit a P11D(b) summarising total Class 1A NIC liability

  4. Pay any Class 1A NIC due by 22 July

If you’re using an agent or payroll service, they can do this on your behalf. Always keep a copy of the forms submitted for your records.

What Is a PAYE Compliance Check?

A PAYE compliance check is an HMRC review of your payroll, expenses and benefits reporting. They’ll examine whether you’ve been deducting the correct income tax and NICs, and whether you’ve accurately reported benefits in kind.

Common triggers include inconsistent reporting, sudden spikes in expenses, or not filing P11Ds when expected. If HMRC finds errors, they may issue penalties, demand back payments, or tighten oversight.

To avoid issues:

  • Maintain accurate employee records

  • Keep detailed receipts and justifications for expenses

  • Be consistent in reporting benefits and reimbursed costs

If HMRC decides you were careless or deliberately non-compliant, penalties can increase sharply.

Final Word

The P11D isn’t just a formality—it’s a legal requirement for reporting benefits that could impact an employee’s tax position. Missing deadlines or misreporting can bring penalties or unwanted attention from HMRC. If you provide any benefits in kind, make sure you understand the rules, get the calculations right, and file on time.