P11-D Reporting: Submission & payment deadlines

P11D Overview

Employers are required to submit P11D annual reports to HMRC together with any related tax and National Insurance payments when benefits are offered to employees or when specific expenses are covered.

Organizations should be aware of their P11-D compliance duties, as majority of UK businesses offer their staff perks like private health insurance, life insurance, company car, fuel benefit etc.

Employers must complete a form P11D for each employee provided with a non-payrolled Benefit in Kind (BIK). In addition, employers will need to file the employer return P11D(b) if they have a Class 1A National Insurance contributions liability.

What are the deadlines for P11D?

• submission of P11D/P11D(b) to HMRC – 6 July 2022;
• payment of P11D employer Class 1A NIC – 19 July 2022 (extended to 22 July 2022 if payment is by electronic means);

Reporting payrolled benefits

If an employer wishes to payroll benefits, it must register with HMRC to do so before the start of the tax year in which it wishes to commence payrolling.

The employer must calculate the cash equivalent value of the relevant benefit and add it to employment income taxed through the payroll.

If the cash equivalent is not known at the start of the tax year, an estimate can be made and adjusted later during the year when the relevant information is available.

These benefits do not need to be reported on a P11D and HMRC will amend the employees’ tax codes in respect of those benefits.

A form P11D(b) must also be filed in respect of payrolled expenses benefits.

Deadline for registration to payroll benefits is on or before 5 April preceding the tax year in which payrolling of benefits is to commence.

PAYE settlement agreement (PSA)

Employers may choose to meet an employee’s tax liability arising on benefits rather than have them pay the tax due through the payroll or though the P11D process. In this case, they will need a PAYE settlement agreement (PSA).

A PSA is an agreement entered into between an employer and HMRC. It is used to cover all the tax and National Insurance due on minor, irregular or impracticable expenses or benefits for employees, which are neither payrolled nor included on the P11D.

If this is the first year for which an employer wishes to enter into a PSA with HMRC (ie, for the 2021/22 tax year), the employer will need to have the PSA in place by 5 July 2022.

Deadlines

• application to HMRC for PSA (usually using form P626, which includes the items required for the application) – 5 July 2022;
• payment of income tax and Class 1B NIC – 19 October 2022 (extended to 22nd if payment is by electronic means).

When to tell HMRC that you don’t need to file a P11D/P11D(b)

You will only need to tell us your client does not need to make a return if we sent you or your client a paper P11D(b), an electronic notice to file a P11D(b) or a reminder to file a P11D(b) letter.

How to make sure you have filled everything correctly

Use our working sheets and online toolkits to make sure you have filed everything correctly.

More detailed information including common errors to avoid were published in the June Employer Bulletin.

Where to send amendments or paper P11D and P11D(b)

Amendments and paper submissions must be sent to:

P11D & P11D(b)
HM Revenue and Customs
BX9 1WE