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If you’re an employer, or a worker with a company car, expenses or other benefits, you’re likely to have come across the P11D form.
But what exactly is a P11D and what information does it include? In this guide, we’ll aim to answer these questions and more, including helpful information on P11D calculators, deadlines and how to submit the form as an employer.
We’ll even give you a handy tip for paying workers as an employer - the Wise multi-currency account. This gives you a cost-effective way to pay workers, contractors and freelancers all over the world, for low fees and the mid-market exchange rate.
But more on that later. Let’s get back to the P11D form.
In a nutshell, the P11D is a form which outlines all the expenses, payments and benefits that an employee or director pays tax on. It’s issued by the employer after the end of each tax year.
The P11D is usually relevant to businesses whose workers use company cars or other company-owned equipment in order to do their jobs. But employees may also receive one if they work from home, have a company credit card, living accommodation provided by the business or perks such as private medical insurance.
The P11D form contains a number of different categories, relating to various expenses and benefits. But not all of these will apply to every worker, so some will be blank.
Here’s what you can expect to find on a P11D:
- The tax year the form relates to
- Employer details including PAYE reference
- Employee details including National Insurance number
- Details of assets transferred to the employee or director, including company cars or other equipment. In the case of company cars, this includes the make and model, engine size, list price and other details
- Mileage allowance information
- Value of any relevant vouchers or payments made on behalf of the employee.
The form will also indicate which categories of benefits the employer will pay Class 1A National Insurance contributions on.
It’s worth knowing that not every worker who receives taxable benefits will get a P11D from their employer. There are some exceptions. Here are just a few of the circumstances in which you may not receive a P11D:
- If your employer takes the tax you owe on benefits and expenses out of your pay
- If your employer simply tells you how much your benefits are worth instead.
It is solely the responsibility of the employer to fill out the P11D form for each employee, making sure all information is accurate before submitting to HMRC. Employees don’t have to do anything.
It can sometimes be complicated to fill in information for lots of different employees on a range of benefits and expenses. But thankfully, HMRC has a P11D calculator you can use to work out the taxable value of things like company cars.
Employers have some strict deadlines to meet in relation to the P11D form. Each year, they must submit P11D forms for all applicable workers online by 6th July after the tax year has ended. All employees should receive their copy of the P11D by the same date.
By 22nd July, employers must make sure they have paid all Class 1A National Insurance contributions owed in relation to P11D.
If you miss the P11D deadlines for submitting your forms, you could face a penalty of £100 per 50 employees for each late month.
If your employer gives you your annual P11D form and you lose it, don’t panic. The good news is that you can just request a replacement from the company you work for. If they can’t give you a replacement for any reason, you may be able to get a copy from HMRC.
As an employee, your P11D is useful for a number of reasons. You’ll definitely need it if you submit a tax return, and it may also affect the tax you pay. This is because any taxable expenses or benefits you receive from your employer can be offset against your tax code - which could mean you pay more tax.
If you’re an employer with workers, freelancers or contractors overseas, you could be wasting money by paying them through your bank. Here’s a better way - open a multi-currency account with Wise.
With Wise for Business, you can send money all over the world for tiny fees and the real, mid-market exchange rate. If you have a lot of people to pay, save time by automating batch payments through the powerful open API.
You can even integrate your Wise account seamlessly with software such as QuickBooks and Xero, which could make life easier when it comes to meeting accounting and tax obligations.
So, there you have it - your at-a-glance guide to the P11D form, including what it’s for, why it’s important and the deadline dates for submitting each year.
We’ve included handy info for employers and workers, so both should now be fully up to speed on this important tax form.
Sources used for this article:
- Gov.uk - employer reporting expenses
All other information from: Which.co.uk - what is a P11D
Sources checked on 12 March 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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