Understanding what a P11D is – and our P11D service

A P11D form is used by employers in the UK to report benefits in kind (BiKs) given to employees or directors that are not already included in their wages. P11D forms are issued annually.

The P11D form is designed to provide HMRC with details of specific taxable benefits that are subject to PAYE and NI deductions, and which have not been included in the payroll throughout the tax year. Some benefits cannot be payrolled, and so these would always appear on a P11D at the end of the tax year.

The benefit values shown on the form enable HMRC to review the employee’s tax affairs for the relevant year, to check that the correct amount of tax has been paid. It also allows them to update an individual’s tax code for the following year to ensure that the employees overall tax liability is accurate.

The P11D is completed by the 6th of July for the tax year just ended. For example, a P11D completed and issued on the 6th of July 2023 would relate to the tax year that ended on the 5th of April 2023 (6th April 2022 – 5th April 2023).

Employers

Employers must complete and submit P11D forms for each relevant employee, and have provided their employees with their personal P11D form by the 6th of July every year.

Annual P11D reporting allows the employer to pay any Class 1A National Insurance Contributions that may be due on benefits that were not processed through the payroll.

Cox & Co. issue P11D forms and copies of P11Ds to employers via the employer portal.

Employees

Employees should review their P11D form to understand their taxable benefits and ensure the information is accurate. Benefits can affect and employees tax code, as HMRC may adjust the code to account for the taxable value of the benefits. This ensures that the correct amount of tax is deducted, via PAYE, in the following tax year.

Employees will use their P11D form to complete their self-assessment forms, due by the end of January, following the tax year that ended in the April prior.

Cox & Co. issue P11D forms to employees via their employee portal. They will receive an email informing them that their P11D form is available to review and download.

The Cox & Co. P11D Service

At Cox & Co Payroll Solutions, we can handle the entire P11D process for you. The process is outlined below.

1. We will send out a bulletin asking if you’ll require our P11D services
2. You reply saying ‘yes, I want the services’
3. We then send you a letter of engagement to sign
4. You sign the letter of engagement and return it to us at Cox & Co
5. In accordance with the deadlines outlined in the engagement letter:
6. You submit relevant information
7. We process the information
8. We then produce a draft for you to authorise
9. You authorise the draft
10. We submit your P11D figures to HMRC
11. Finally, we upload the final reports to the portal for your records