P11D Filing: Must You Report Employee Benefits in Kind?

If your employees receive perks like a company car or health insurance, you may need to report them to HMRC. This P11D guide explains what counts as a benefit in kind and how to file your P11D form correctly to avoid penalties.

Key Takeaways

• If you provide non-cash perks to employees or directors, you may need to file a P11D and pay Class 1A NICs.

• The P11D filing deadline is 6 July for filing and 22 July for payment – missing either can lead to penalties.

• Pay-rolling benefits can simplify things, but you must register before the tax year starts.

What Counts as a Benefit in Kind?

A Benefit in Kind (BiK) is any non-cash perk or service you give to an employee or director that has a personal benefit, and HMRC usually sees it as taxable.

Common examples include:

• Company cars and fuel for personal use

• Private medical or dental insurance

• Interest-free or low-interest loans over £10,000

• Rent-free or discounted accommodation

• Vouchers, gym memberships, or other non-cash gifts

• Assets for personal use, like phones, laptops, or TVs

These P11D benefits must be valued and reported unless you’ve chosen to tax them through payroll.

Some things don’t count, like:

• Pension contributions

• One work mobile phone

• Trivial gifts under £50

• Meals in a staff canteen

• Work-related training

If in doubt: If the perk saves the employee money or provides personal value, it’s probably a BiK.

When and How to File a P11D

Once you’ve worked out which benefits need reporting, the next step is knowing when and how to file. Missing deadlines or filing incorrectly can lead to penalties, so here’s what to do and when to do it.

Filing Deadlines

• Submit P11D and P11D(b) online by 6 July, following the end of the tax year (5 April → 6 July).

• Pay Class 1A National Insurance by 22 July (or 19 July if paying by cheque).

What to File

• P11D: One online form per employee/director receiving taxable benefits that aren’t taxed through payroll.

• P11D(b): A single online form summarising total Class 1A NICs due across all reportable benefits, even if some were payrolled.

How to Submit

• Online only - HMRC no longer accepts paper forms.

• Use HMRC PAYE Online (for under 500 employees) or commercial payroll software (for larger employers).

• After filing, give each employee their P11D copy by 6 July.

Payroll Benefits Option

• If you payroll benefits, you don’t file individual P11Ds, but you still file P11D(b) for Class 1A NICs.

• To payroll benefits, you must register before the tax year starts (6 April).

Feeling unsure about what to report or whether you even need a P11D? BOOK A QUICK FREE CALL with one of JAFA’s accountants. We’ll review your setup, flag any risky benefits, and help you avoid penalties before the deadline hits.

What We Think

P11Ds often catch small business owners off guard, not because they’re ignoring the rules, but because the system can be confusing. We’ve seen clients assume that payrolling benefits means no forms are needed at all, or that low-value perks like health insurance don’t count.

We think HMRC could simplify things, especially for businesses with only one or two employees. But until then, it’s important to understand that even small, non-cash perks can lead to extra tax and reporting.

What matters most is knowing what needs to be reported and when. Get that right, and you’ll avoid penalties and headaches.

How JAFA Can Help

At JAFA, we help small businesses cut through the confusion. Whether you're unsure what counts as a benefit, when to file, or whether you need a P11D at all, we’ll guide you through it.

We’ll make sure everything is reported correctly and on time, including Class 1A NICs. And if payrolling benefits is a better fit for your setup, we’ll get you registered and handle the process from start to finish.

Book a FREE 15-minute compliance check with a JAFA specialist. In one call, we’ll confirm whether you need P11Ds, spot any red-flag benefits, and map out your next steps, so you stay penalty-free and can get back to running your business.