Private healthcare, interest-free loans for travel season tickets and company cars are all benefits in kind that need to be included on a P11D form, but the specifics of what employers need to include are more complex.
As benefits in kind effectively increase your salary, there may be National Insurance contributions (NICs) to be paid on them as they are effectively a salary increase, but those NIC contributions will be paid by the company, not the individual. The individual does need to record these on their own personal tax return.
Who needs to file a P11D?
P11Ds are filed by the employer, not the employee and must be lodged with HMRC by 6 July following the tax year in question. So, for the tax year running 6 April 2022 to 5 April 2023, it must be filed by 6 July 2023.
What needs to be included?
- Loans for rail season tickets
- Non-business travel expenses
- Non-business entertainment expenses
- Company cars
- Other loans
- Health insurance
For certain business expenses, there are exemptions available whereby the majority of business expenses incurred personally by company employees no longer need to be recorded on a P11D form. Exempt expenses include:
- Business Travel
- Business entertainment expenses
- Credit cards used for business purposes
- Fees and subscriptions.
- Late filing penalties
As with all tax matters, it is important to file with HMRC by the deadlines as you could incur penalties, although if you miss 6 July, you are likely to be given a couple of weeks’ grace, although this is not guaranteed.
Beyond that, the company will incur fines of £100 per month (or part month) per 50 employees. If you need help with P11D or have questions about any workplace benefits, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494 552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 6 March 2023.