What is a P11D, and when does a company director need one?

When running a limited company for the first time, you’ll come across lots of new accounting terminology. When it comes to payroll, one term you may encounter is the P11D.

First things first, what is a P11D?

In this blog, Kerry Newman, Head of SG Accounting, explains what a P11D is and when you might need one as a director.

A P11D is a form used to report benefits in kind (BiK) that have been provided to directors and employees by their employer.

BiKs are non-cash benefits provided in addition to salary. They are subject to income tax for the employee, and usually Class 1A National Insurance for the employer (not employee NIC).

Update since this guide was first published: HMRC plans to require most benefits to be taxed via payroll (payrolling) from April 2027.

1. P11D Form

Employers use the P11D form to report benefits that have not been taxed through PAYE during the year.

A separate P11D is completed for each director and employee by 6 July following the tax year.

If a benefit is payrolled, you don’t file a P11D for that item.

P11D and P11D(b) returns must be filed online.

2. NICs payment deadline

You must pay any Class 1A National Insurance due on these benefits by 19 July (or 22 July if paying electronically).

3. Providing copies to employees

If you employ people, you are responsible for providing them with copies of their P11D information by 6 July.

4. P11D(b)

A P11D(b) shows the total Class 1A National Insurance due on the benefits you provided, and is sent to HMRC alongside your P11Ds.

If HMRC has told you to file but you have no Class 1A due, submit a nil P11D(b) or tell HMRC that no return is due.

5. Penalties for non-compliance

If you fail to complete and submit a P11D/P11D(b), or you are late, penalties can apply. HMRC may also charge interest for late payment.

The P11D(b) late filing penalty is £100 per 50 employees for each month (or part month) late.

6. Benefits in kind (BiK)

Benefits in kind include non-cash perks such as company cars, company-paid private fuel, and private health insurance. These are taxable. Read our BiK guide.

7. Exemptions

Some benefits are not taxable. Examples include:

• Food provided by a staff kitchen
• Parking at or near the workplace
• Employer pension contributions
• Workplace sports facilities available to staff generally
• Work-related training
• Workplace safety equipment
• Business expenses paid directly by the employer (for example, via company card) that would be deductible

8. Declaration

You must declare the value of benefits annually on P11D forms unless the benefits are payrolled.

If an employee completes a Self Assessment return, the benefit figures are usually included on the employment pages; you don’t duplicate amounts that have already been taxed via payroll.

9. Class 1A National Insurance

Certain BiKs attract Class 1A National Insurance. This is an employer liability and does not count towards an individual’s state benefits record. Your accountant can advise on what’s due and how to calculate it.

10. Payment

Class 1A National Insurance can be paid online by Direct Debit, bank transfer, or debit/corporate credit card. Pay Class 1A NIC on GOV.UK.

11. Accuracy

It is the employer’s responsibility to provide accurate information to HMRC. Review P11D forms carefully before submission and ask your accountant to check anything you’re unsure about.

P11D – final thoughts

P11D forms are an important part of reporting and taxing employee and director benefits.

To stay compliant, meet the deadlines, provide accurate information, and pay any associated Class 1A NIC on time.

If you have questions about P11Ds or how they apply to your business, speak with your accountant.