P11D
A P11D reports taxable benefits and expenses given to a director or employee during the tax year. It is filed after 5 April, with the company paying Class 1A National Insurance at 15% on the reported value.
Also known as: form P11D, benefits return
How it works
Where a benefit has not been taxed through payroll, the company reports it on a P11D after the tax year ends. The employee then pays income tax on the value, usually through a change to their tax code, and the company pays Class 1A National Insurance at 15%. The filing deadline is 6 July and the Class 1A payment is due by 22 July if paid electronically.
Typical entries for an owner-managed company are company cars and fuel, private medical insurance, and beneficial loans where a director's loan exceeds £10,000 and carries no interest. Business expenses reimbursed at HMRC rates, and anything covered by an exemption, do not go on the form.
The direction of travel is payrolling. Taxing benefits in real time through payroll removes the P11D for those benefits, spreads the employee's tax across the year and avoids the tax-code surprise the following spring. Registration to payroll has to happen before the tax year starts, so the decision is made in advance rather than in hindsight.
Penalties for a late P11D run at £100 per 50 employees per month, and inaccurate returns carry separate penalties, so it is worth reconciling benefits to the accounts before filing rather than after.
Who this affects
- Directors with a company car, medical cover or an interest-free loan over £10,000
- Companies that have not registered to payroll benefits
- Employees whose tax code changes unexpectedly the following year
- Small employers who assume benefits without cash are not reportable
Common mistakes
- Missing beneficial loan interest on an overdrawn director's loan account
- Filing the P11D but forgetting the Class 1A payment by 22 July
- Reporting reimbursed business expenses that are actually exempt
Frequently asked questions
When is the P11D deadline?
6 July after the end of the tax year, with Class 1A National Insurance payable by 22 July where paid electronically.
What goes on a P11D?
Taxable benefits not already payrolled: company cars and fuel, private medical insurance, beneficial loans, accommodation and similar provided items.
Can I avoid filing a P11D?
Yes, by registering before the start of the tax year to payroll benefits, which taxes them in real time instead.
What is the penalty for filing late?
£100 per 50 employees for each month or part month the return is late, with further penalties for inaccuracy.
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Reviewed by Waqas Sagar ACA FCCA FMAAT · Last reviewed 13 September 2026 · Figures for 2026/27 · About our practice
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