What is a P11d: A Basic Guide

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• Do you receive or pay your employees or
  directors expenses or benefits throughout the
  year?
• Then you must complete and submit a P11d form to
  HMRC for each employee who has received the
  benefits, as well as a P11d(b) to summarize the
  class 1A NIC due, as required by law.
• Does all that sound like nonsense? If so, it does
  to many people, so you are not alone. The good
  news is that here we are going to explain this
  form in greater detail, so it makes more sense.

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P11d Basics

• The biggest question most people have, after what
  is a P11d is what goes on a P11d. The answer to
  the latter is any of the following
• Any reimbursed expenses
• Any employment benefits that do not go through
  payroll, such as gym memberships or non-business
  related education.
• All business related entertainment expenses.
• Company car provisions and fuel reimbursements
• Any directors beneficial loans.

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Statistical Details for a P11d Form

• There are also certain standard statistical
  details that must be included on a P11d form
• Your employer reference number
• Your employees full legal name
• Your employees NI number or date of birth, as
  well as his or her gender
• If youre reporting a company car, include the
  list price.
• If you fill out the total cash equivalent of car
  fuel provided, make sure to fill out the total
  cash equivalent of cars provided as well.
• If you give a beneficial loan to an employee
  youre reporting, fill out the cash equivalent
  of loans section as well.

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What Exactly is a P11d(b)?

• A P11d (b) is a summary of your P11ds that shows
  the total amount of Class 1A NIC your company
  owes to HMRC. You must also submit a P11d (b) if
  you have one or more P11ds to submit
• 4 Steps to a Successful P11d (b)
• Enter the total cost of all expenses and benefits
  for the year.
• Adjust this total to account for expenses and
  benefits that do not require Class 1A NIC.
• Calculate your NIC for Class 1A.
• Make your P11d declaration in its entirety via a
  P11d(b)

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A Word About Company Cars and the P11d

• One of the most common reasons for a P11d to be
  submitted is to report the usage costs associated
  with a company car. Obviously the type of car
  and its age will affect how it is taxed.
• Despite the fact that you, the employer, will be
  the one to submit the P11D form, the employee
  will be the one to pay the tax bill. This is
  where the P11D becomes crucial for company car
  drivers.
• The same P11D value calculation applies to both
  new and used cars, so if youre thinking about
  running a fleet of used company cars to save
  money, the P11D value and tax will still be based
  on the original list price. If there isnt a list
  price to refer to, a notional price is used
  instead. This is the price at which the cars
  manufacturer, importer, or distributor would have
  been expected to sell it.

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When Do P11d (b) Forms Need to be Filed?

• The P11d(b) form has a filing deadline of July
  6th. For each month/part month, penalties will be
  calculated at 100 per 50 employees.
• You will receive one reminder from HMRC that your
  P11d is overdue if it is not received by July 19
  after that, you will only receive a penalty
  notification if your return is 4 months late.
• Need help with P11d forms or any other aspect of
  business accounting? Pearl Lemon Accountants can
  help. Get in touch today and lets chat about
  your unique accounting needs and just how we can
  assist you.

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