After the end of the tax year you need to complete and send your expenses and benefits forms. You need to submit a form P11D or P9D for each employee to whom you've provided expenses and benefits during the tax year, and one form P11D(b) to declare the overall amount of Class 1A National Insurance contributions (NICs) due on all the expenses and benefits you've provided.
All of these forms must be submitted to HM Revenue & Customs (HMRC) by 6 July and the easiest way to do this, if your payroll software doesn't do it automatically, is to use HMRC's Online End of Year Expenses and Benefits service.
This guide outlines all the different ways you can complete and send these three forms. It sets out the key information you need to provide and it explains which employees to use a P11D for and which to use a P9D for.
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Forms P11D, P9D and P11D(b) must reach HMRC by 6 July following the end of the tax year.
Your payment of the Class 1A NICs declared on form P11D(b) must reach HMRC by 22 July, or by 19 July if you pay by cheque.
If you haven't got any Class 1A NICs to pay because you didn't need to send any P11Ds, see the section in this guide 'How to tell HMRC no Class1A NICs are due'.
You can send your forms electronically using:
You're probably already registered for PAYE Online and have a user ID and password for PAYE Online. But if you're not registered, you will need to do so before you can send your forms online. Whichever method you choose - you'll need your password and user ID when you send them.
You can download HMRC's online forms - P11D, P9D and P11D(b) - to your computer, complete in stages if need be and save, ready to submit electronically when completed in full. The online forms:
HMRC strongly recommends that you send the forms electronically - the online forms allow you to accurately enter the correct information and submit via an HMRC electronic channel. In exceptional cases, you can use a printed paper form and send to the address at the end of this section.
If you need to send a paper form P11D(b), the declaration on the form must be signed - photocopies will not be accepted.
You can obtain blank paper copies by contacting HMRC's Employer Orderline - you can find a link at the end of this section.
Printed forms or paper forms that you have manually completed must be sent to:
Benton Park View
Newcastle Upon Tyne
It's important to choose the correct option, P11D or P9D, for each employee. The one to use depends on the employee's earnings and on whether they're a director of your company, as explained below. When you use HMRC's Online End of Year Expenses and Benefits service you will be presented with screens to complete for both P11Ds and P9Ds so it's important to choose the right ones.
Use form P11D to report expenses and benefits provided to an employee earning at a rate of £8,500 or more per year. See below for what to include within the £8,500 threshold.
Use form P9D to report expenses and benefits provided to employees earning at a rate of less than £8,500 per year. See below for what to include within the £8,500 threshold.
The £8,500 threshold doesn't only include wages or salary that you pay the employee. You must also include the value of the expenses and benefits they receive from you.
The £8,500 operates on a pro rata basis if the employee only works for part of the year. For example, if an employee only works for six months of the year then you'll need to use a form P11D if their earnings in that period are £4,250 or more.
Use form P11D for almost all company directors. Only use form P9D if all of the following apply:
In broad terms, a director has a material interest in a company if (alone or together with associates) they own or can control more than 5 per cent of its ordinary share capital.
When you complete forms P11D or P9D, you must enter the total value of your employee's expenses and benefits during the tax year. You need to enter these details into the relevant category and section on the form and work out the value of individual expenses and benefits. For help with reporting specific expenses or benefits on forms P11D and P9D see 'Expenses and benefits A to Z'.
When completing form P11D (but not P9D) you must also report:
The errors listed below are a common cause of delay in HMRC's processing of forms P11D. Those covered by HMRC's P11D quality standard can cause particular problems - HMRC frequently has to reject and ask for resubmission of forms that contain these errors. If you use HMRC's Online End of Year Expenses and Benefits service you are less likely to make these errors.
Every form P11D must include the following information:
If you submit your P11D information in list format rather than on standard forms, you must also:
You must complete and send a form P11D(b) if you have one or more P11Ds to submit to HMRC at the end of the tax year.
HMRC recommends that, if your payroll software doesn't have the facility to send this form, you use the Online End of Year Expenses and Benefits service to complete and send your P11D(b) electronically.
If you have no return to make because you have no expenses or benefits of the type to be returned on forms P11D there is an online form you can use to tell HMRC - please follow the links below. But if you've already indicated on your final submission for the tax year that forms P11D and P11D(b) are not due you don't need to send the online form. And if you receive a form from HMRC they would prefer that you don't send it back as you've already told them that you have no return to make.
There are four key things that you must do on form P11D(b).
First, enter the total value of the expenses and benefits you provided during the tax year that were liable to Class 1A NICs:
Second, make any necessary adjustments to this total. This will apply if your total:
Third, work out your Class 1A NICs liability for the year. This is calculated as a percentage of the (adjusted) total value of your expenses and benefits from the first two steps above. For the actual percentage rate, see the P11D(b) form for the relevant year.
Fourth, declare which of the following applies to you:
You must tell HMRC in advance if you intend submitting a batch of P11Ds for employees who have had all their expenses and benefits taxed via the payroll. Tell HMRC online using 'Notification of Payrolled Benefits' - there are links at the end of this section. If you don't, your employees will be taxed twice.
The entries in the '1A' boxes on the form P11D normally make up the total value of all expenses and benefits liable to Class 1A NICs, which is then entered in the relevant box on the form P11D(b). But for payrolled expenses and benefits where there is an 'amount made good or from which tax deducted' box, the entries in the '1A' boxes will not provide you with the correct value on which Class 1A NICs is payable. In these cases you will need to recalculate the total value of all expenses and benefits on which you are liable to pay Class 1A NICs, ensuring the actual amount of the expense or benefit included in payroll is used as opposed to the net 'cash equivalent' amount after payrolling has taken place.
The online form 'No Return of Class 1A National Insurance contributions' allows you to tell HMRC that you will not be liable for Class 1A contributions. This form can be used if you've previously advised HMRC on your final submission for the tax year that P11Ds are due. But if you've already indicated on your final submission that forms P11D, and P11D(b), are not due you don't need to send the online form.