P11D deadline: New rules for submissions

It’s that time of year again. The deadline for submitting your P11Ds and P11D(b)s to HMRC for the 2022/23 tax year is just around the corner. Both forms must be submitted by employers or by accountants on behalf of their clients on or by the 6th of July. Employees should also be given a copy of their P11Ds on or by the 6th of July to let them know how much each benefit they received throughout the year is worth.

Any Class 1A National Insurance owed on expenses and benefits must be paid by the employer by the 22nd of July, or the 19th of July, if paying by cheque.

What is a P11D and a P11D(b)?

P11D

A P11D is the form that you must submit to HMRC each year to report any expenses or benefits that have been provided to any employees or directors for the previous tax year. The information on a P11D is used to calculate how much tax is owed on expenses and benefits.

P11D(b)

A P11D(b) form summarises any Class 1A National Insurance Contributions (NICs) you’re due to pay for the previous tax year. NICs are due on most employee benefits, although there are some exceptions. NICs are paid by the employer only.

Payrolling of benefits

You won’t need to submit a P11D if an employee’s expenses and benefits were payrolled. Payrolling of benefits is where employers include the value of certain taxable benefits and expenses in their employees’ regular pay, rather than reporting them separately to HMRC at the end of the tax year. There are, however, some expenses and benefits which cannot be payrolled. Unlike the P11D, if employees’ expenses and benefits are payrolled, you’ll still need to submit a P11D(b).

What are considered expenses or benefits?

Expenses or benefits are goods or services given or provided to an employee by their employer, in addition to their normal salary.

Examples of expenses and benefits:

Company car & fuel
Health insurance
Travel and entertainment expenses
Childcare
Gym membership

To see the full list of employee expenses and benefits, visit HMRC’s website.

What happens if you miss the P11D and P11D(b) deadlines?

With so many tasks to manage at once, it can be easy to miss the deadline for submitting your P11D and P11D(b) forms. However, you are at risk of receiving a penalty if you are late submitting a P11D. If you’re late submitting a P11D(b), you will receive a penalty of £100 per 50 employees for each month or part month your P11D(b) submission is late. You’ll also be penalised and charged interest if you’re late paying any NICs to HMRC.

Penalties can also occur if you carelessly or deliberately give inaccurate information in your tax return. For example, not paying enough tax or over-claiming tax reliefs.

New rules for submitting P11Ds and P11D(b)s

There have been some changes around P11Ds for the 2023/24 tax year – P11D and P11D(b) submissions are required to be submitted and amended online only. For employers with under 500 employees, you can submit P11Ds and P11D(b) forms through HMRC’s PAYE Online Service, but to save time (and a whole lot of hassle), we recommend using payroll software to report expenses and benefits.

Submitting your P11D and P11D(b) forms through your payroll software

As a busy payroll processor, it can be hard to find the time to manually submit your P11D and P11d(b) forms. If you’re using BrightPay, customers can use the payroll software to record all types of reportable expenses and benefits that you provide to your employees. BrightPay can also produce an Expenses and Benefits submission (EXB) to send to HMRC after year end which includes your Class 1A NIC declaration (P11D(b)) and the P11D employee details for any expenses and benefits provided.

When you’re in the software, select ‘RTI’ on the menu bar > New > Expenses and Benefits (EXB). Once you’re happy with the information, select ‘Create Submission > Send now. The return has then been submitted to HMRC. Simples.

To find out more about Bright’s payroll software BrightPay, and how it can help make submitting P11Ds and P11D(b)s to HMRC easy, why not book a free 15-minute demo of our payroll software.

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This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.