What is a P11D?
A P11D is the form employers use to report benefits in kind and certain expenses given to employees and directors, so HMRC can tax them.
What a P11D means
When an employer provides something other than cash pay, such as a company car, private medical insurance or a low-interest loan, the employee is usually taxed on its value as a benefit in kind. The P11D records the cash equivalent of each benefit for each employee. The employer also files a P11D(b) summarising the total and pays Class 1A National Insurance at 15% on it.
Key dates for the 2026/27 tax year:
- 6 July 2027: P11D and P11D(b) forms to HMRC, and copies to employees
- 22 July 2027: Class 1A NI paid electronically (19 July by cheque)
Employers can instead "payroll" most benefits, taxing them through PAYE each month. HMRC plans to make payrolling benefits mandatory from April 2027, so the P11D will largely disappear for that year onwards; check the current position for the year you are reporting.
Example
A director has private medical insurance costing the company £1,400 and an interest-free loan of £12,000 all year.
| Benefit | Taxable value |
|---|---|
| Medical insurance | £1,400 |
| Loan over £10,000 at HMRC's official interest rate | Interest the director should have paid |
The medical insurance alone costs a higher-rate director £560 in income tax (40%) and the company £210 in Class 1A NI (15%). The loan is a benefit because it exceeds £10,000; below that, no benefit arises.
Why it matters for your business
Late P11Ds attract penalties of £100 per 50 employees for each month late, and incorrect ones can lead to penalties too. Directors' companies are where mistakes are most common: a car, a phone contract in the director's name, or an overdrawn director's loan can all create reportable benefits.
Some benefits are exempt and need no reporting, including one mobile phone per employee, employer pension contributions, a trivial benefit up to £50 (capped at £300 a year for directors) and an annual party costing up to £150 a head.
Benefits that often catch small companies out
A company car or van with private use, fuel paid for private journeys, a director's personal bills paid by the company, and an overdrawn director's loan above £10,000 are the most frequent. If the director reimburses the company for a private cost before the deadline, the benefit can usually be reduced or removed.
Common questions
Any employee or director who received taxable benefits in kind or certain expenses that were not payrolled or covered by an exemption. If you provide no such benefits, there is nothing to file, though HMRC may ask you to confirm it.
No. A P60 shows the cash pay and tax deducted through payroll for the year. A P11D shows non-cash benefits that were not taxed through payroll. An employee with benefits might receive both. Both may be needed to complete a Self Assessment return.