P11Ds – Key things to know
What is a P11D?
A P11D is a form provided to employees who are in receipt of taxable benefits from their employer. The requirement to file P11Ds should be reviewed annually and forms will need to be prepared with updated information each year. It details the cost (or cash equivalent) of any benefit provided to them from the employer. This is needed in order for them to prepare their tax return (if they are required to file one), or to notify them of tax deducted via their PAYE code from their income.
A company has a corresponding document called a P11D(b). The P11D(b) details the total cost (or cash equivalent) of all benefits provided by them to their employees, as well as the Class 1A National Insurance payable by the employer on the benefits provided.
What is a taxable benefit?
A taxable benefit is defined as a reward for services from an employer to an employee, or a member of an employee’s family, in a form other than cash. These are also known as benefits in kind. The most common benefits include:
- Private medical or dental
- Company cars and vans
- Private fuel provided for company vehicles
- Living accommodation
- Interest free loans
- Gym memberships
- Mobile phones (over 1 per employee)
- Staff parties where the cost per head is over £150.
There are many other taxable benefits in kind which need to be disclosed on a P11D, if you are unsure of whether you are providing a taxable benefit in kind it is always best to check with your accountant.
When do I need to file a P11D and how much tax do I need to pay?
P11D’s run in line with the tax year (6th April – 5th April). The return will need to be filed by 6th July following the end of the tax year, any P11Ds prepared will also need to be distributed to the relevant employee by this date or penalties may be incurred.
Class 1A National Insurance is payable by the employer, the amount is based on the cost (or cash equivalent) of all benefits provided at a rate of 14.53% for 2022/23. Please note that this rate is an effective rate to take into account the introduction of the Health and Social care levy which was introduced and subsequently reversed during the 2022/23 tax year.
Any Class 1A National insurance due is payable by 19th July if paying via cheque or 22nd July if paying electronically. Any late payments may attract penalties or interest being charged.
For example, a P11D form for the 2022/23 tax year will need to be filed by 6th July 2023 and will need to be paid by 19th July 2023 if paying by cheque and 22nd July 2023 if paying electronically.
How can Ad Valorem help you?
We would be happy to advise you of the tax implications of any benefits you wish to, or are currently, providing we to prepare and submit the forms on your behalf.
If you believe you have provided taxable benefits to an employee, or would like to start providing benefits to your employees, please do not hesitate to get in touch.
(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk
