This article would go over the P11D form in detail including what to add in it, the right filing period, and the repercussions for not filing it.

What is a P11D form?

A P11D form is an annual form which is used for reporting fringe benefits or perks. Benefits can be any service or items which are enjoyed by employees from their respective companies, other than their salaries. It can be the provision of interest-free loans, company cars, and private healthcare. The P11D form facilitates employers in notifying these benefits in kind to HMRC so it can be used for your annual Self Assessment return.

Since fringe benefits are providing a noticeable boost in your salary, hence they may require some National Insurance payments for filing. It is necessary to realize that these payments are to be paid by the companies—not the employees.

Who has to file for P11D?

As we mentioned above, employers have to file the form and thus it does not come under the duties of employees. However, since contractors and freelancers also act as an employer, therefore they may or may not have to file for it depending upon their role.

When is the right time to file a P11D Form?

P11D forms are required to be filed by the 6th of July. For instance, if your tax year runs from April 2018 to April 2019, then, it is mandatory to file your PI1D by the 6th July 2019.

What comes in a P11D form?

Broadly speaking, any benefit which is paid by a company for their employees has to be added in the P11D form. They include:

  • Health insurance.
  • Cars provided by the company.
  • A loan taken for tickets of rail season.
  • Assets in personal use of employees.
  • Any fee paid by the company for self-assessment.
  • Travel expenses for personal reasons.
  • Entertainment expenses for personal reasons.

Late filing penalties

Similar to HMRC’s handling of other tax filing regulations, the authority is stringent with any late filings or improper filing for the P11D too. For those, who are unable to file by the 6th July (paper or online both), penalties would not be slammed instantly. Instead, you have a chance to file your P11D within a fortnight. However, if you are still unable to file by the 19th July, then your company would begin to experience penalties—£100 for each month per 50 employees in a company.  If you fail to file by November, then HMRC would take the next step. It would remind you about your penalty history till that point with a notice.

Penalties for incorrect filings

On the other hand, if you did file P11D but incorrectly, then HMRC would be far more lenient. You could still get fines but in this scenario, HMRC would first analyze your situation to discern if you deserve a penalty. If HMRC is sure that you made an honest mistake and followed the procedure sensibly, then it may not punish you with any fine.

However, if HMRC finds any fault on your part, finds you intentionally hiding your actual liabilities, or engaging in lies, then you could face fines. These fines maybe 30%, 50%, or even 100%, depending on HMRC’s findings.