Benefits in kind are perks or benefits that employees receive on top of their salary, such as company cars, private medical insurance or interest‑free loans. When these benefits are not put through payroll during the year, employers must report them to HMRC once the tax year has ended. This is done using forms P11D and P11D(b), and the deadline for submitting these forms is 6 July following the end of the tax year on 5 April.
Any income tax due from the employee on these benefits is collected either through their self‑assessment tax return or by HMRC adjusting their PAYE tax code. Employers must also pay Class 1A National Insurance on most taxable benefits, and this payment must reach HMRC by 19 July, or by 22 July if paid electronically.
Emma Fisher, Senior Corporate Tax Manager at Burgis & Bullock, comments: “The P11D process is something many businesses underestimate, particularly around the tight July deadlines. Getting the reporting right is essential to avoid penalties and ensure both the employer and employee are taxed correctly.”
If you are unsure which benefits need reporting or want support managing the process, Burgis & Bullock can help make sure everything is submitted on time and in line with HMRC requirements www.burgisbullock.com
Emma Fisher, Senior Corporate Tax Manager at Burgis & Bullock
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