You may have heard the form P11D being referred to a number of times when working with your accountant or when seeking quotes from an accountant. This blog will highlight what the P11D actually is and who may be impacted by this. Not everyone will need to complete a P11D and in reality we have very few clients who are required to do so.
A P11D is a form that is submitted to HMRC to provide information about specific benefits received from an employer (your limited company, for example) other than the salary received.
You can see form the above description that the P11D form is all about benefits received. Examples of such benefits could be company assets received, payments made on behalf of the employee, living accommodation provided to the employee or cars and fuel provided to the employee.
The above requirements apply to both company director’s and other company employees.
The P11D must be filed with HMRC by 06 July each year, proceeding the end of the tax year (05 April). The form requires details to be added for the relevant tax year just ended.
The main purpose of the P11D is to inform HMRC of how much employer National Insurance is due on the benefits provided to employees, if any. This is referred to as Class 1A National Insurance contributions.
It is not a requirement to report reimbursed expenses on the P11D. So, if this is the only income you have received from your limited company on top of salary and dividends the you are unlikely to need to complete a detailed P11D.
No P11D due
You may be required to notify HMRC that no P11D is due. This is a fairly simple task for an accountant to complete and it is certainly something that our cheap accountants are happy to complete for you as and when needed. We don’t even charge you for this!
If you have any questions about your P11D feel free to email us at firstname.lastname@example.org