A P11D is a tax form from the Inland Revenue which is used to report benefits and expenses from an employer to an employee that are not administered via the companies payroll system.
When do you need to complete a P11D
If you receive benefits, payments or expenses greater than the amounts below, you are required by law to provide this information to the Inland Revenue:
- Every employee and/or director receiving benefits, payments or expenses greater than £8,500 a year or more
- Each director receiving benefits, payments or expenses less than £8,500 a year unless they are: (1) a full time director of the company with no material interest in the company. (2) a director of a non profit or charity.
Your P11D must include any benefits, payments or expenses that was received by the company to the household of the employee. This includes your spouse, or civil partner, sons and daughters and their spouses or civil partners.
When don’t you need a P11D
If there are no expense payments, benefits or expenses, the employee shouldn’t complete a ‘nil’ P11D
Section of a P11D
There are currently 14 sections of a P11D. A cash equivalent needs to be calculated for each item, most times this is straightforward but sometimes there are more complicated calculations such as for company cars and vans, which we will detail in future articles. The 14 sections of the P11D are listed below:
A- Assets Transferred
B- Payments made on behalf of the employee
C- Credit Cards and vouchers
D- Living Accommodation
E- Mileage Allowances
F- Cars and car fuel
G- Company Vans
H- Beneficial Loans
I- Medical Health
J- Qualifying Relocation Payments
K- Services Supplied
L- Assets placed at employee’s disposal
M- Other Items
N- Expenses Payments