A P11D form is where employers and directors of companies have to declare benefits in kind to HMRC.
Whether you employ people in your business, or you’ve received benefits in kind as a director, you’ll need to declare these benefits every year.
Being self-employed you’re essentially both an employer and employee, so you should use the P11D form to report any benefits to HMRC as part of your annual Self Assessment.
This article covers:
- how to declare employee benefits on a P11D
- benefits in kind to include
- who needs to complete a P11D form
- P11D deadline and penalties
- how to submit a P11D
- P11D tax calculator
- changes to P11D you need to know
Declaring employee benefits on a P11D form
There are two forms you need to know about:
P11D form
A P11D form is used for employers and company directors to declare benefits in kind – you’ll submit one for each employee or director.
P11D(b) form
The P11D(b) form is where you’ll summarise all the P11Ds you’ve submitted to show the total benefits in kind given by the business, and any Class 1A National Insurance contributions you’re due to pay for the year.
Benefits in kind to report on your P11D
A P11D is used to report benefits in kind. Benefits in kind are non-cash benefits, or perks, provided to a director or employee that aren’t included in their salary or wages.
These are taxable benefits so need to be reported to HMRC, and you may need to pay National Insurance contributions on these benefits.
Benefits in kind include things like:
- mileage payments
- car benefit or car fuel benefit
- mobile phone
- vans available for private use
- health insurance
- interest-free loans, e.g. season ticket loans
- relocation expenses
- living accommodation
- gym membership
…and what doesn’t need to be included?
You don’t need to include any allowable business expenses on your P11D. This includes things like:
- office supplies
- business travel expenses
- stock and materials
Who needs to complete a P11D form?
Employers need to file a P11D form for any employees in receipt of benefits in kind. You should also complete this form for company directors or if you’re registered as self-employed.
You must use a separate P11D for each director or relevant employee.
If there aren’t any taxable benefits in kind to declare then you don’t need to complete a form.
When is the P11D deadline 2025?
You have a legal obligation to report any expenses and benefits to HMRC at the end of the tax year. Your P11D must be filed by 6 July for the previous tax year, and any taxes must be paid by 19 July (by cheque) or 22 July (for electronic payments).
The P11D submission deadline for the 2024-25 tax year is 6 July 2025 and the payment deadline is 19 or 22 July 2025 depending on how you pay.
What if you miss a deadline?
It’s important to file all tax returns accurately and on time – and this includes your P11D form.
The P11D penalties kick in if you miss the deadline by two weeks. After this you’ll be fined £100 each month (or part month) your form is late, for every 50 employees.
There’s also a penalty for making an incorrect return, or for deliberately submitting incorrect information. This penalty is a maximum of £3,000 for each form.
You could also receive a penalty for late payment. Read more about the HMRC penalty appeals process, plus the points-based penalty system.
How to submit your P11D
You can report benefits in kind to HMRC in two ways:
- file P11D online using the PAYE online service
- report using payroll software – be sure to find payroll software that’s recognised by HMRC
The government retired the interactive PDF for 2021-22 submissions. All P11D forms must now be submitted online.
Check the government’s website for more guidance on completing the P11D forms.
You don’t need to submit a P11D form if you’re payrolling benefits. You just need to register the benefits with HMRC online so they know that tax is being collected through payroll. The government website has more information on payrolling benefits.
P11D tax calculator – how much to declare?
The government has a P11D tax calculator you can use to work out the taxable value if you offer a company car to employees (or yourself as a company director).
P11D is changing
From April 2027, payrolling benefits will become mandatory. This will mark an end to P11D forms for reporting benefits in kind.
The government has already pushed back the timeline for introduction, which was originally slated for April 2026.
Penalties for inaccuracies won’t be charged when filing in 2027 and 2028 to help ease the transition to the new system – unless there’s evidence of deliberate non-compliance.
The P11D and P11D(b) forms will be temporarily retained for employment related loans and accommodation. All other benefits in kind will need to be reported through a Full Payment Submission (the same way employers report employee salaries to HMRC).
Nothing is confirmed yet and draft legislation is expected in autumn 2025.
This comes at a time when HMRC is already struggling to offer a satisfactory service, and MPs have urged it to improve.
Keep an eye on the Knowledge centre for updates, read about payroll software, and speak to an accountant if you’re not sure of anything.
Keep accurate records
It’s important to be on top of your finances and keep accurate records for tax reasons.
When it comes to your P11D, you’ll need to keep copies of benefits-related records for three years from the end of the tax year they’re for. For more general guidance, read our article on how long to keep business records.
Your records should include the date and details of every benefit, and how you worked out the amounts (for example, receipts), and any payment you (or your employee) contributes.
More information on bookkeeping and tax can be found in the guides below:
- Best invoice apps for small businesses
- Best accounting software for small businesses
- How to do a balance sheet and free template
- A budget calculator and guide for the self-employed
- A guide to bookkeeping for small businesses
Tax is a complex topic. Please treat this article as a guide only and get professional advice if you’re not sure about anything.
Useful guides for small business owners
- How to do a Self Assessment tax return
- What employee benefits can attract new hires to your business?
- What is the Construction Industry Scheme?
- What does public liability insurance cover?
Looking for self-employed insurance?
With Simply Business you can build a single self employed insurance policy combining the covers that are relevant to you. Whether it’s public liability insurance, professional indemnity or whatever else you need, we’ll run you a quick quote online, and let you decide if we’re a good fit.