Provide company cars, private medical insurance or other perks to your staff? Then you probably need to report them to HMRC on forms P11D and P11D(b), and pay Class 1A National Insurance. This guide explains what P11Ds are, who must file them, the deadlines and penalties, and the big change coming in April 2027, when most benefits must be reported through payroll instead. Taxlab, Chartered Certified Accountants in Bathgate, West Lothian, prepares and files P11Ds for employers across Scotland.
What is a P11D?
A P11D is the form employers use to report the taxable expenses and benefits they have provided to an employee or director during the tax year (6 April to 5 April). Common examples include company cars and fuel, vans, private medical insurance, living accommodation, beneficial loans and other non-cash benefits.
The P11D(b) is the employer’s summary of the Class 1A National Insurance due on all those benefits. The Class 1A rate for 2026/27 is 15%.
HMRC uses the P11D figures to collect tax from each employee, usually by adjusting their PAYE tax code or through their Self Assessment tax return. Each benefit is valued differently; HMRC’s Expenses and benefits: A to Z explains the rules for each one.
Who needs to file a P11D?
- If you provide taxable expenses or benefits that you do not payroll, you must complete a P11D for each employee or director who received them, and a P11D(b) for the Class 1A National Insurance.
- If all of an employee’s benefits are payrolled, you do not need a P11D for them, but you must still submit a P11D(b) for the Class 1A National Insurance.
- Employees do not file P11Ds themselves, but you must give each employee a copy of the information you report.
Employers with fewer than 500 employees submit P11D and P11D(b) through HMRC’s PAYE Online service; larger employers use payroll software. HMRC only accepts paper forms if you have stopped trading.
Some routine expenses, such as business travel, phone bills, business entertainment and uniforms or tools for work, do not need reporting if they are covered by an exemption, for example where you reimburse actual costs or pay HMRC’s benchmark rates.
P11D deadlines
| What you need to do | Deadline after the end of the tax year |
|---|---|
| Submit P11Ds to HMRC | 6 July |
| Give employees a copy of their P11D information | 6 July |
| Submit the P11D(b) for Class 1A National Insurance | 6 July |
| Pay Class 1A National Insurance | 22 July (19 July if paying by cheque) |
| Pay tax and Class 1B National Insurance under a PAYE Settlement Agreement | 22 October (19 October if paying by cheque) |
For the 2025/26 tax year, P11Ds and the P11D(b) were due by 6 July 2026. For 2026/27, they are due by 6 July 2027. See HMRC’s P11D deadlines.
Penalties
A late P11D(b) attracts a penalty of £100 per 50 employees for each month or part month it is late. HMRC also charges penalties and interest on late payment of Class 1A National Insurance, and penalties if you carelessly or deliberately give inaccurate information. To fix a mistake, use HMRC’s online P11D and P11D(b) correction forms.
Big change: payrolling benefits in kind from April 2027
HMRC is moving the reporting of benefits in kind into payroll:
- From 6 April 2026, employers can no longer register to payroll benefits voluntarily. You can only payroll benefits for 2026/27 that you registered before 6 April 2026; everything else is still reported on a P11D for this tax year.
- From April 2027, most employers providing medical benefits, company cars, vans, and car or van fuel must report them through payroll and deduct the tax in real time, instead of reporting them on a P11D after the year end.
- From April 2028, most other benefits in kind will follow, except employer-provided loans and accommodation.
Read HMRC’s policy paper on mandatory reporting of benefits in kind in RTI from April 2027 and its guidance on payrolling benefits and expenses. If you provide company cars or private medical cover, now is the time to plan: your payroll will need the benefit values from April 2027, and employees will see the tax deducted in each pay packet rather than through their tax code.
HMRC guidance and forms
- How to complete P11D and P11D(b) – HMRC’s section-by-section guide (updated April 2026)
- P11D working sheets 2025 to 2026 – for calculating car, van, accommodation, loan and other benefits
- CWG5 (2026): Class 1A National Insurance contributions on benefits in kind
- Expenses and benefits for employers – reporting, deadlines, record keeping and exemptions
ACCA guidance
- ACCA: Benefits – a technical article explaining how the main benefits in kind are valued, based on 2025/26 legislation
- ACCA: Non-taxable employee benefits and payments – benefits you can provide tax-free
- ACCA technical factsheet: treatment of benefits in kind – P11D guidance – explains the general valuation principles; note the figures in it relate to 2021/22
Record keeping
Keep a record of every expense and benefit you provide, how you worked out the figures on your forms, and any amounts employees contributed. HMRC says you must keep these records for 3 years from the end of the tax year they relate to.
How Taxlab helps
- Reviewing the expenses and benefits you provide and identifying what is taxable, exempt or tax-free
- Calculating benefit values, including company cars, fuel and beneficial loans
- Preparing and submitting P11Ds and the P11D(b) by 6 July
- Calculating Class 1A National Insurance and reminding you to pay by 22 July
- Setting up PAYE Settlement Agreements for minor or irregular benefits
- Getting your payroll ready for mandatory payrolling of benefits from April 2027
See also our guides to paying employer’s PAYE and auto-enrolment.
P11D FAQs
When is the P11D deadline?
P11Ds and the P11D(b) must reach HMRC by 6 July after the end of the tax year, and Class 1A National Insurance must be paid by 22 July (19 July by cheque).
Do I still need a P11D if I payroll benefits?
Not for the payrolled benefits. But you must still submit a P11D(b) to report the Class 1A National Insurance you owe.
Can I start payrolling benefits now?
Not voluntarily for 2026/27: HMRC closed new registrations from 6 April 2026. Payrolling becomes mandatory for medical benefits, cars, vans and fuel from April 2027, so you should prepare your payroll now.
What happens if I miss the P11D deadline?
HMRC charges £100 per 50 employees for each month or part month your P11D(b) is late, plus penalties and interest on late Class 1A payments.
Talk to us about P11Ds
Call 0845 862 6009, email hello@taxlab.co.uk or message us on WhatsApp.
Checked against HMRC and ACCA guidance in October 2026. This page gives general information only and is not tax advice.