Benefits in Kind — P11D Reporting
Complete and Compliant Reporting of Employee Benefits and Expenses
Employers in the UK who provide employees with additional perks beyond regular pay—such as company cars, medical cover, or loans—must report these benefits in kind to HMRC using P11D forms. These benefits are taxable, and incorrect or late reporting can result in financial penalties and additional scrutiny from HMRC.
My Tax Consultants supports businesses with accurate and complete P11D reporting, including calculation and declaration of Class 1A National Insurance, submission of P11D(b) forms, and year-round advisory to remain compliant.
What Are Benefits in Kind (BIKs)?
Benefits in kind are any non-cash items or services provided to an employee that carry a monetary value. These benefits are considered taxable and must be reported unless specifically exempt.
Common benefits in kind include:
- Company cars and fuel allowances
- Private medical insurance
- Living accommodation provided by the employer
- Low or interest-free loans exceeding £10,000
- Non-business entertainment or travel expenses
- Gym memberships or other personal perks
- Assets provided for personal use, such as phones or laptops
Each of these benefits is assessed by HMRC for tax purposes. They must be reported accurately on a P11D form for every employee receiving them.
Why P11D Reporting Is Essential
Submitting complete and timely P11D forms is a legal obligation for employers under UK tax law. Missing deadlines or submitting incorrect figures may lead to:
- Financial penalties for late submissions
- Interest charges on unpaid liabilities
- Increased scrutiny or HMRC audits
- Incorrect tax deductions from employees
- Misreported Class 1A National Insurance liabilities
To comply, employers must submit P11D forms and a P11D(b) summary to HMRC by 6 July each year, covering the previous tax year. Payments of Class 1A NIC are due by 22 July (if paying electronically) or 19 July (by post).
What We Offer in Our P11D Reporting Service
At My Tax Consultants, we offer a structured service designed to handle the entire P11D reporting process on your behalf. We aim to remove the uncertainty and effort from your internal team, helping you avoid errors and delays.
1. Benefit Identification and Valuation
We begin by reviewing your company’s employee benefits and identifying all benefits in kind that are taxable. Our specialists apply HMRC rules to value each benefit correctly and determine whether it must be reported.
This includes reviewing:
- Vehicle records
- Loan agreements
- Private insurance plans
- Accommodation and utility costs
- Any other items or services of value
2. Preparation of P11D Forms
We prepare and format each employee’s P11D form, assigning the appropriate benefit codes and valuation. This includes both directors and employees, whether full-time or part-time.
Each form includes:
- Details of the individual
- Description of each benefit provided
- Calculated taxable values
3. Completion and Submission of P11D(b)
Alongside the employee forms, we complete your P11D(b) submission, which declares the total value of all benefits provided and calculates the employer’s Class 1A National Insurance liability.
We handle all digital submissions through HMRC’s systems, ensuring secure and verified delivery.
4. Class 1A National Insurance Calculations
Class 1A NIC is an additional cost to the employer. It’s calculated as a percentage (currently 13.8%) of the total taxable value of reportable benefits.
We calculate this accurately and provide you with:
- Final NIC figures
- Payment deadlines and reminders
- Optional payment scheduling advice
5. Support with Payrolling Benefits (If Applicable)
Some employers choose to include benefits directly in payroll, removing the need for P11Ds. If you’ve registered to do this with HMRC before the tax year begins, we help you:
- Accurately include benefit values in monthly payroll
- Keep detailed records of payrolled benefits
- Understand the reporting obligations that still remain
6. Record-Keeping and HMRC Correspondence
We retain structured documentation for every benefit reported, helping you maintain records that meet HMRC’s requirements. In case of queries, corrections, or audits, we correspond directly with HMRC on your behalf.
Who Should Use This Service?
Our P11D reporting support is suited for:
- Limited companies providing company vehicles or other perks
- SMEs unsure about their benefit reporting obligations
- Startups offering benefits without a formal finance team
- Directors receiving non-cash compensation
- Employers who previously received P11D penalties or reminders
Whether you provide one benefit or manage multiple staff with different packages, our team tailors the service to your specific needs.
P11D Filing Deadlines You Must Know
- 6 July – Deadline to submit P11D forms and P11D(b) to HMRC
- 6 July – Provide copies of the P11D forms to employees
- 19 July – Deadline for Class 1A NIC payment (by post)
- 22 July – Deadline for Class 1A NIC payment (online)
Missing any of these dates may result in fines starting at £100 per 50 employees for each month or part month that the return is late.
Avoid Errors and Penalties — Let My Tax Consultants Handle It
P11D obligations can easily be overlooked or misunderstood, especially when benefits are varied or informal. Our experience in preparing and submitting P11D forms, calculating Class 1A National Insurance, and liaising with HMRC removes that risk completely.
Whether you’re reviewing your current process or starting from scratch, My Tax Consultants will handle every step of the P11D reporting process efficiently and accurately.
Speak to My Tax Consultants today to arrange your P11D and benefits in kind review—before the next HMRC deadline approaches.
