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Business Tips

Do I need to complete a P11D?

A P11D is the name of a return sent to HMRC after the end of the tax year.  This form reports taxable benefits and expenses provided to employees during the tax year.

Many employers choose to provide benefits to their employees.  This can include company cars, pension contributions, gym memberships or even just parking at their place of work.  Some of these benefits are taxable, others are not.  Those which are taxable will need to be declared on a P11D.  In the above example, the gym membership and company car are taxable benefits.  This will be included on the P11D.

In addition to benefits, it is usual for employers to pay expenses to their employees.  In most cases, these will be reimbursed business expenses, where the employee incurs a business cost on behalf of their employer, and later seeks reimbursement.  In this case, a disclosure is required, although a taxable benefit does not arise.

Some employers pay a round sum allowance to cover general costs.  This is normally a taxable benefit in most cases.

P11D returns are therefore likely to be required in these circumstances.  The returns must be filed by 6th July following the end of the tax year.

It may be possible to avoid P11D returns in some circumstances.  However this area is complex and you are best advised to consult a tax expert.  For more information on London payroll services or P11d return help, please contact Wisteria on 020 8429 9245.