Outsourced Payroll

P11D Forms: Employer FAQs and Important Change from 6th April 2023

In this article we answer frequently asked questions by employers regarding P11D forms and outline a key change from 6th April 2023, HMRC will no longer accept paper P11D and P11D(b) forms.

What is a P11D?

P11D is a tax form that employers use to report the value of any taxable benefits and expenses that they have provided to their employees or Directors during the tax year.

Taxable benefits and expenses can include things like company cars, private medical insurance, travel expenses, and certain types of accommodation.

The P11D form is used by HM Revenue & Customs (HMRC) to calculate how much tax and National Insurance contributions an employee or director should pay on these benefits.

Who needs to file a P11D?

Employers are required to submit a P11D form for each relevant employee or director that receives taxable benefits and expenses.

Freelancers and contractors should also consider if they need to make a declaration.

When do I need to file a P11D?

P11D forms need to be submitted by July 6th following the end of the tax year (which runs from April 6th to April 5th). They must also provide each employee or director with a copy of their P11D by the same deadline.

What are the changes from 6th April 2023?

Person checking their National Insurance record

From 6th April 2023, employers will no longer be able to submit paper P11D and P11D(b) returns to HMRC. All returns must be made online. This includes lists.

From 6th April 2023, if an employer submits a paper P11D or P11D(b) (original or amendment) the form will be rejected on the basis that it has not be submitted to HMRC in the prescribed manner.

The employer or agent will be notified of the rejection and sign-posted to the correct process.

HMRC is changing legislation to mandate the submission of original P11D and P11D(b) returns online through one of the following:

  • PAYE Online for Employers
  • Payroll software recognised by HMRC

For employers who need to submit up to 500 P11D and P11D(b) returns, the free HMRC PAYE online services can be used. For anything more, 3rd party software is required.

HMRC will publish electronic versions of the P11D and P11D(b) forms on GOV.UK, which will enable employers and agents to submit amended forms electronically from 6th April 2023.

No software changes are required, as this electronic form is not part of the current online services.

What needs to be included on a P11D?

Fuel Expenses

Any items the company pays for and that the employee benefits from must be included on the P11D form. Expenses and benefits that need to be reported to HMRC include:

  1. Company Cars
  2. Car Fuel
  3. Vans & Private Fuel
  4. Mileage Allowances
  5. Living Accommodation
  6. Relocation Expenses
  7. Meals
  8. Telephone
  9. Medical Care
  10. Income Tax
  11. Childcare
  12. Goods or Services
  13. Personal Incidental Costs
  14. Private Expenses
  15. Loans (including overdrawn director’s loan accounts)
  16. Round Sum Allowances
  18. Assets
  19. Annual Social Functions
  20. Vouchers, Credit Cards

If you are a client of Leonherman, you will have received a detailed outline of these more common items which require declaration on P11D forms.

What are the penalties for late filing?

As with most tax filings, HMRC will issue you with penalties if you file late or incorrectly.

If you miss the 6th July deadline, you won’t incur penalties straight away – you have about a fortnight to put things right and file.

If you haven’t filed your P11D after July 19th, your company (not you personally) will incur fines of £100 per month (or part month) per 50 employees.

If you still haven’t filed by November, HMRC will send you a reminder, along with details of all the penalties you’ve accrued up until then.

If your P11D is incorrect, you could also face fines – but only if HMRC believes you deserve them.

If your mistake was genuine and HMRC believes you took reasonable care before filing, you might not face any fines.

However, penalties of 30%, 70% or 100% of the owed tax can be applied if HMRC believes you acted carelessly, deliberately misled them, or attempted to conceal your true liabilities.

Contact Leonherman for More Information

If you have any questions about P11D forms and what should be included in your return, please get in touch with our accounting experts today. Call us on 0161 249 5040 or email partners@leonherman.co.uk.

Share on facebook
Share on twitter
Share on linkedin
To get a-head in business, subscribe