9 P11D Facts and questions

P11D season is upon us, and our responsive outsourced payroll team never miss an excuse to share some fun payroll facts around the office. So we thought we’d share these with you too, this time around the topic of P11D. Understanding your P11D responsibilities is crucial for ensuring compliance with HMRC regulations.

1. What are P11D, P45 and P60 forms?

What is a P11D? – This is an annual payrolling reporting requirement for employers. It focuses on taxable benefits which have been made available to employees and haven’t already been included in the normal payroll (whether that’s on a monthly or weekly basis).

As well as sending this to HMRC (either directly as an employer or through your outsourced payroll provider) employees will also be provided with a copy.

As we’ll explore later, P11D reporting is currently evolving and the process will be changing.

What is a P45? – This is issued when you leave your employer and provides you, your new employer and HMRC with useful information, including how much tax you’ve paid on your salary so far in the tax year.

What is a P60? – Your P60 shows the tax you’ve paid on your salary in the tax year. This form is provided to employees annually and makes up part of the end of the tax year reporting which payroll teams need to complete.

2. What does the P in P11D, P45 and P60 stand for?

It stands for paragraph. The “P” code refers to documents in the PAYE series, in the same way that self-assessment documents are prefixed “SA” (e.g., SA100 – Individual tax return) and tax credits paperwork is prefixed “TC” (e.g., TC600 – Tax credits application).

You’ll want to ensure your P11D forms are accurate and submitted by the deadlines explained in more depth below.

3. When is the P11D deadline for 2024?

The deadline for sending your P11D form to HMRC is 6th July 2024, its a key date for employers to remember. Missing the P11D deadline can result in penalties, so timely submission is essential.

There are a few deadlines you need to be aware of as your payroll responsibilities expand beyond the 6th July.

6th July – By this date you need to have reported your expenses and benefits to HMRC, provided your employees with a copy of the information and report the total Class 1A National Insurance that you owe.

22nd July – By this date you need to pay Class 1A National Insurance (this deadline is 19th July if you are paying by cheque).

22nd October – This date (or 19th October if paying by cheque) marks when you need to pay tax and Class 1B National Insurance if you have a PAYE Settlement Agreement.

Ongoing Monthly Payroll – Throughout the year you need to continue to pay PAYE tax or Class 1 National Insurance if you are doing this through ‘payrolling’

4. How much is the P11D fine for missing the deadline?

You’ll be charged a penalty of £100 per 50 employees for each month or part month your P11D(b) is late. There are also additional charged penalties and interest if you’re late paying HMRC.

5. What is P11D(b)?

Along with your P11D, you will have to submit a P11D(b) form. This form is used to declare the amount of Class 1A National Insurance due on the expenses and benefits, and these must be paid by 22 July for the previous tax year.

6. When was P11D introduced?

The P11D return was originally introduced in the 1960s where the salary threshold was just £200. Ironically, at the time this was introduced this didn’t cover civil servants or local authority employees!

7. How has P11D changed over time?

There have been a few changes over the years. The first of the big changes started in 2002 when company car calculations (based on mileage, list price and CO2 emissions) was introduced.

2017 also saw the introduction of optional remuneration arrangements in 2017. This means the employee opts in to give up their right to a certain percentage of salary, otherwise known as salary sacrifice, or the right to some other form of cash pay in return for the benefit.

8. What is the future of P11D reporting?

Companies now have a new way to report benefits and expenses to HMRC through (PBiK), otherwise known as payrolling benefits with mandatory changes expected from 2026.

Explore more on the Payrolling of Benefits

9. Which employee benefits bring the biggest P11D confusion?

Benefits in Kind (BiK) can add complexity to the Payrolling process for this.

Here’s a round up of some common areas of P11D confusion.

Staff entertaining and gifts
Travel and subsistence
Food provided in the office
Company Cars
Mobile Phones

Where can I get payroll support with P11D?

The P11D deadline brings with it extra payroll admin which can be detrimental especially for small business payroll or any company where you have limited payroll support. Outsourcing payroll to a trusted provider can help significantly with both monthly payroll and these one off deadlines throughout the year.

We’re supporting companies with these elements our wider payroll services, whether you’d like to explore support for P11D, bureau payroll services or fully managed payroll give us a shout.

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Please note that the information in this blog was created based on the integrity of reputable links at the time of publishing. These blogs should be used for guidance only, you should always check information further before taking action as sources may update over time. Talk Staff holds no responsibility for implementation or loss