Form P11D: A RIFT Guide
Thursday March 28, 2019
What is form P11D?
P11D is a document that employers use to tell HMRC about the employment benefits they’re giving out. These are the little extras employees receive in addition to their salaries, whether that means company cars or private medical cover. There are a few exemptions on what has to be declared but, as with everything to do with the taxman, getting the little details wrong can lead to huge headaches.
What information is included in a P11D?
In addition to the usual basic identifying information, like an employee’s name and National Insurance number, a P11D will detail any benefits received on top of their normal pay. The form has 14 main sections, as follows:
- A: Assets transferred (cars, property, goods, etc.).
Used when an employer buys something and transfers it to an employee.
- B: Payments made on behalf of employee.
Any bills paid for the employee by the employer.
- C: Vouchers and credit cards.
This only covers expenses that aren’t already accounted for in other sections. Using a corporate credit card to fuel a company car wouldn’t typically go here, for instance.
- D: Living accommodation.
This includes a basic charge for all properties and an additional charge for properties worth over £75,000.
- E: Mileage allowance payments not taxed at source.
This is only used for payments over and above the standard AMAP rates.
- F: Cars and car fuel.
The rules around company cars can be complex. It’s important to get solid, professional help to make sure you get it right.
- G: Vans and van fuel.
The benefit value of a company van depends on what kind of use the employee gets from it (restricted/unrestricted, private/shared, etc.).???
- H: Interest-free and low interest loans.
Loans with a value that remains below £10,000 throughout the year do not need to be reported here
- I: Private medical treatment or insurance.
There are exemptions here for things like certain eye tests, health check-ups and insurance needed for travel abroad.
- J: Qualifying relocation expenses payments and benefits.
There’s a threshold here of £8,000 in expenses. Anything below that isn’t taxed.
- K: Services supplied.
There’s a tricky overlap in this section with section B. Section K is used when there’s a contract for the service between the provider and the employer, rather than the employee.
- L: Assets placed at the employee’s disposal.
This is basically a catch-all section for company assets like motorcycles, boats and private aeroplane use.
- M: Other items (including subscriptions and professional fees).
Another very general section. As with section K, you need to keep in mind whether the contract is with the employer or the employee.
- N: Expenses payments made on behalf of the employee.
Most reimbursed expenses are now covered by exemptions and therefore do not need to be reported
Do employers have to give P11Ds out to employees?
Not necessarily. However, even if they don’t give them a copy of the actual form, they do still need to tell employees how much each of their benefits is worth. Employees also won’t get a P11D if the tax due on their benefits is taken out of their pay before they get it.
What’s the difference between a P11D and a P11D(b)?
A P11D(b) form lets HMRC know how much an employer owes in Class 1A National Insurance (this is the national insurance due on benefits) for the expenses and benefits provided. Essentially, employers need to file a P11D(b) if:
- They offer expenses or benefits to employees through their payroll.
- They’ve submitted any P11Ds.
- HMRC has asked them to for any reason.
There are painful penalties for not sticking to the taxman’s rules, and form P11D is no exception. Come to RIFT with any tax problems or questions you’re dealing with. Our specialist teams make us the UK’s leading tax experts, so whatever business you’re in, you’re better off with RIFT.