P11D Reporting for the 2024/25 Tax Year: What Employers Need to Know

Employers should be mindful of their obligations regarding P11D reporting. These annual submissions are used to notify HMRC of any taxable benefits and expenses provided to employees and directors – and it’s crucial to stay compliant to avoid penalties.

What Is a P11D?

A P11D is a statutory form used by employers to declare certain benefits provided to staff, such as company cars, private healthcare, or interest-free loans. The reported information helps HMRC ensure employees are paying the right amount of tax and assists in updating their tax codes for the following year.

The P11D is required for the 2024/25 to 2026/2027 tax years, after which it is expected that benefits will need to be fully payrolled – meaning the tax on those benefits will be collected through the payroll system in real time.

Commonly Reported Benefits

Some of the most frequently reported benefits include:

·      Company cars and fuel

·      Vans made available for personal use

·      Private medical insurance

·      Loans exceeding £10,000 where low or no interest is charged

·      Subscriptions paid on behalf of employees

·      Assets available for personal use

·      Employer-paid personal bills

·      Employer-provided accommodation

Payroll vs. P11D

If you opt to ‘payroll’ certain benefits—meaning you include the value in employees’ regular pay and deduct tax accordingly—then you do not need to include those benefits on the P11D form. However, for non-payrolled benefits, a form must be submitted for each relevant employee.

In all cases, a P11D(b) form must also be completed. This calculates the Class 1A National Insurance due on the taxable benefits, which is payable by the employer.

Key Deadlines and Penalties

P11D and P11D(b) forms must be submitted to HMRC by 6th July following the end of the tax year. A copy of the P11D must also be provided to each affected employee. Late or incorrect submissions can result in penalties, so it’s important to take this seriously.

Staff Parties and Event Exemptions

With staff events and functions, employers should be aware of the £150, including VAT,   per head exemption. This applies to annual events such as a Christmas party.

·      If the cost per head is £150 or less, the benefit is not taxable.

·      If the cost exceeds £150, the entire amount becomes a taxable benefit.

·      The £150 a head limit may apply to more than one event during the tax year provided that the total cost of all functions does not exceed £150. 

Trivial Benefits: When You Don’t Need to Report

Small benefits costing £50 or less are often exempt from both tax and NIC, meaning they don’t need to be reported on a P11D. This exemption is commonly used for small gestures like festive gifts.

However, for the exemption to apply, all of the following must be true:

·      The benefit is not cash or a cash voucher

·      The total cost (or average cost per person) is £50 or less

·      It is not provided as part of a contractual agreement or salary sacrifice

·      It is not a reward for services performed

Where the employer is a close company, trivial benefits provided to a director (or their family) are capped at £300 per tax year.

If these conditions are not met, the benefit must be reported as usual and may be taxable.

Need Support?

Staying compliant with P11D requirements doesn’t need to be daunting. At SJC Chartered Accountants, we provide expert support to ensure your benefits are reported accurately and efficiently. If you’re unsure about what needs to be included or would like help preparing your forms, we’re here to help.

Contact us today at for advice tailored to your business.