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What is a P11D?

What does it mean to you and your limited company?

A P11D form is an HMRC document used by an employer to annually report certain expenses and benefits paid or made available to directors and employees.

It is designed to provide HMRC with details of specific taxable benefits in kind which cannot, or the employer has chosen not, to be included in the payroll and subject to PAYE and NIC deduction during the course of a year.

P11D FAQs

A P11D is a HMRC form on which employers are required to report taxable benefits made available to employees which have not already been included in the payroll. It also provides an employer with the opportunity to report and pay any employer National Insurance Contributions payable on non-payrolled benefits.

The form requests details, including values, of such things as:

  • Assets transferred to employees
  • Vouchers and credit cards provided to employees and directors
  • The provision of living accommodation *
  • Cars and fuel provided for employees and directors
  • The provision of vans and van fuel
  • Payments for private medical treatment or insurance
  • Details of any low or interest free loans *
  • Expenses payments made on behalf of employees or directors which the employer does not believe would be eligible for tax relief as business expenses

Since 2016 employers have been able to payroll most taxable benefits (except those marked with an * above) rather than report them on the form.

This is a voluntary arrangement which is available to PayStream PSCs although as is common to a number of limited company contractors, the use of interest-free loans from their companies may still require a P11D to be completed.

The payrolling of taxable expenses and benefits enables employers’ Class 1A NIC to be accounted for at the same time as the tax on those benefits.

For those expenses or benefits not payrolled, the P11D enables an employer to identify, report and pay the tax and NIC over to HMRC. This is done with the assistance of a companion form P11D(b).

If you have payrolled benefits such as private medical insurance or the use of a car then you’ll have paid tax under PAYE. Beneficial loans and other benefits shown on a P11D need to be included on your Self-Assessment Tax Return. If you don’t make an annual personal tax Return, then HMRC will make an adjustment to your Tax Code to collect the tax due through your salary.

Employers have to pay Class 1A National Insurance Contributions on non-payrolled benefits disclosed on forms P11D.

The taxable amount will depend upon the type of benefit involved; there are different rules for different types. However, they are all designed to arrive at an amount which is treated as earnings and which are taxed in the same order as earnings.

Yes, if you received taxable benefits by reason of your employment which were not payrolled. For PSC’s this often includes low or interest free loans.

HMRC’s PAYE Online Service is used to report on forms P11D and P11D(b). This is part of an employer’s End of Year duties and the P11D declarations must be filed by 6 July following the end of the tax year on 5 April. Payment of Class 1A NIC is required by 22 July (earlier if not paid electronically).

PayStream's limited company contractors are provided with a P11D return completion service as part of their engagement.

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