Do you need to submit a P11D?

If you are an employer providing expenses and/or benefits to your employees it is likely that you will have to submit a P11D advising HMRC of these expenses or benefits now that the tax year is finished.

Benefits include things like:

• Company car
• Health insurance
• Travel and entertainment
• Childcare
• Accommodation

Expenses include:

• Mileage payments above the HMRC approved rates (45p per mile up to 10,000 miles)
• Subscriptions or memberships 
• Clothing if it is not a uniform or protective clothing
• Round sum amounts to pay for meals, travel, etc
• Vouchers exchangeable for cash, goods or services
• Allowance to purchase tools which can be used privately
• Reimbursement of mobile phone costs if the mobile phone is not in the business name
• Credit card which is used by an employee for business and personal expenses
• Season ticket costs paid for or reimbursed to employees

Other payments you may give your employee/s should always be included in the payroll:

• Bonus or other reward
• Car allowance
• Overtime
• Holiday pay

Any business related expenses incurred by an employee which are reimbursed to them in full do not need to be reported. This includes parking, travel expenses or subsistence when on a business trip.  Staff training which is work-related does not have to be reported.

Previously employers could apply for a Dispensation to cover expenses incurred by employees and reimbursed to them.  It also covered employees who had use of a company debit or credit card as long as they did not purchase anything which was not business related.  Employers have not needed to apply for a Dispensation since April 2016 and are now covered by an exemption for business expenses reimbursed to employees meaning they do not have to be reported on a P11D.

However if you do need to report expenses or benefits for one or more of your employees you should be aware that P11D forms have to be completed by 6 July 2019 with any payment due to HMRC for Class 1 NICs payable by 22nd July 2019.  Once your P11D has been submitted HMRC will send out revised tax codes to employees who have received expenses or benefits to recover any tax due.

Expenses and benefits are a complex area and you should take advice from your accountant who will know whether you are providing expenses or benefits which need to be reported.  Further information about reporting expenses and benefits can be found from HMRC.

Additional information on expenses and benefits can be found here together with an A to Z list of particular expenses and benefits and how they should be treated.