As we move into the summer months, there’s one crucial deadline that demands attention before any thoughts of holidays can take hold – 6th July marks the cut-off date for submitting P11D forms.
“Every year we see businesses caught out by the P11D deadline,” warns Tracy Gill, Payroll Manager at Whitley Stimpson. “It’s easy to assume that because you’ve handled the year-end P60s, you’re done with HMRC reporting. But if your employees receive any benefits beyond their basic salary, there’s still work to be done.”
The P11D form captures all those extras that make employment packages more attractive like company cars, private health insurance or gym memberships. Essentially, if it’s a perk that has a monetary value, it needs to be declared.
Alongside the P11D, employers must also submit a P11D(b) form by the same 6th July deadline. This declares how much Class 1A National Insurance is owed on those benefits – contributions that only employers pay, not employees. The actual payment isn’t due until 19th July if paying by cheque, or 22nd July for electronic payments, but the declaration cannot wait.
“The complexity increases when you consider that even if you’ve been clever and processed some benefits through your regular payroll, you might still need to submit a P11D(b) if there’s any Class 1A National Insurance due,” explains Tracy. “It’s not an either-or situation, sometimes you need both systems running in parallel.”
Even businesses that don’t owe any Class 1A National Insurance cannot simply ignore HMRC correspondence. If you’ve received a P11D(b) reminder but have no liability, you still need to submit a ‘nil return’ to avoid penalties. It’s HMRC’s way of ensuring everyone is accounted for in their system.
Tracy says:
“With mandatory payrolling of benefits pushed back to April 2027, we have breathing space to prepare, but the current P11D requirements remain unchanged. Now is actually the perfect time to review your processes and ensure you’re not missing anything.”
The key to staying compliant is preparation and understanding exactly what constitutes a benefit in kind. With regulatory changes on the horizon and current deadlines remaining firm, getting expert advice can save time.
“Payroll compliance isn’t just about getting the numbers right, it’s about having systems and processes that work reliably year after year,” concludes Tracy. “Whether you manage this in-house or work with specialists, the important thing is ensuring nothing falls through the cracks when July comes around.”
For guidance on P11D compliance and benefits reporting, contact Tracy Gill at tracyg@whitleystimpson.co.uk or 01295 270200.