Posts Tagged ‘P11D’

A Guide to P11D’s

A guide to employee benefits that must be reported on a P11D:

The P11D is used to tell HMRC about the cash value of any expenses and benefits that don’t go through payroll.

Anything the company pays for or buys for the direct benefit of an employee should be included.

The most common benefits that are reportable on a P11D include:

• Company cars and vans where there is an element of private use.
• Medical or dental treatment and other forms of insurance.
• Mobile phones and internet where there is private use (unless the contract is in the company name)
• Low interest or interest-free loans in excess of £10,000.
• Gym memberships.
• Accommodation provided to employees.
• Assets sold or given away to employees.

You don’t have to report certain business expenses and benefits like business travel & entertaining, phone bills, uniform & tools for work as long as you are re-imbursing in one of the following ways:

• paying a flat rate to your employee as part of their earnings – this must be either a benchmark rate or a special (‘bespoke’) rate approved by HMRC
• paying back the employee’s actual costs

The deadline to submit a P11D for 2020/21 is 6^th July 2021.

If you need any advice on employee benefits or think you may have to submit a P11d, please get in touch.