At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits.
You’ll need to submit a P9D form instead for any employee earning less than £8,500 ‘at a rate’ in the tax year ending on 5 April 2016.
You should also submit a P11D(b) form if:
- you’ve submitted any P11D forms
- you’ve paid employees’ expenses through your payroll
- you’ve been sent a P11D(b) form by HMRC
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
If you don’t submit any P11D forms, you can tell HMRC that you don’t owe Class 1A National Insurance by completing a declaration.
Paying tax on benefits through your payroll
You can deduct and pay tax on most employee expenses through your payroll(sometimes called ‘payrolling’) as long as you’ve registered with HMRCbefore the start of the tax year (6 April).
You don’t need to submit a P11D form for an employee if you’re paying tax on all their benefits through your payroll.
You’ll still need to submit a P11D(b) form so you can pay any Class 1A National Insurance you owe.
What to report
Each expense or benefit is calculated differently. Find the type of expense or benefit you’ve provided to see what you’ll need to report and pay.
For ‘minor’ expenses or benefits, you might be able to make a one-off payment, known as a PAYE Settlement Agreement.
How to report
You can use any of the following methods:
- commercial payroll software
- HMRC’s PAYE Online service
- HMRC’s Online End of Year Expenses and Benefits service
Correct an error on a P11D or P9D form
Send HMRC a new version of the P11D or P9D form with the correct information.
Put all the benefits and expenses for the tax year on the form, not just the ones you want to correct.
ExampleYou sent a P11D form showing a medical benefit of £300 and a car benefit of £2,100. The car benefit is correct but the medical benefit should be £500. Send a new P11D form showing both the medical benefit of £500 and the car benefit of £2,100.
You must submit a paper form, even if you originally submitted online.
The forms will show the most recent tax year. Write a different tax year on the form if you need to report for a different year. You must write:
- that you’re using the form to correct an error made in a different year to the one printed on the form
- the tax year you’re making the amendment for
Correct an error on a P11D(b) form
- a new version of the P11D(b) form with the correct information
- new versions of any P11D forms that are incorrect because of the error
Put all the benefits and expenses for the tax year on the new version of the P11D(b) form, not just the ones you want to correct.
Where to send corrected forms
Send corrected forms to:
HMRC NIC and EO
Benton Park View
Newcastle Upon Tyne
You may be charged a penalty if you carelessly or deliberately give inaccurate information in your tax return that results in you:
- not paying enough tax
- over-claiming tax reliefs