2. Reporting and paying
At the end of the tax year you’ll usually need to submit a P11D form to HM Revenue and Customs (HMRC) for each employee you’ve provided with expenses or benefits.
You’ll also need to submit a P11D(b) form if:
- you’ve submitted any P11D forms
- you’ve paid employees’ expenses or benefits through your payroll
- HMRC have asked you to - either by sending you a form or an email
Your P11D(b) tells HMRC how much Class 1A National Insurance you need to pay on all the expenses and benefits you’ve provided.
If HMRC have asked you to submit a P11D(b), you can tell them you don’t owe Class 1A National Insurance by completing a declaration.
Paying tax on benefits through your payroll
You can deduct and pay tax on most employee expenses through your payroll (sometimes called ‘payrolling’) as long as you’ve registered with HMRC before the start of the tax year (6 April).
You don’t need to submit a P11D form for an employee if you’re paying tax on all their benefits through your payroll.
You’ll still need to submit a P11D(b) form so you can pay any Class 1A National Insurance you owe.
What to report
Each expense or benefit is calculated differently. Find the type of expense or benefit you’ve provided to see what you’ll need to report and pay.
For ‘minor’ expenses or benefits, you might be able to make a one-off payment, known as a PAYE Settlement Agreement.
How to report
You can use any of the following methods:
- commercial payroll software
- HMRC’s PAYE Online service
- HMRC’s Online End of Year Expenses and Benefits service
Correct an error
If you’re correcting a P11D form include all the benefits and expenses for the tax year, not just the ones you want to change.
Example You sent a P11D form showing a medical benefit of £300 and a car benefit of £2,100. The car benefit is correct but the medical benefit should be £500. Send a new P11D form showing both the medical benefit of £500 and the car benefit of £2,100.
If you’re correcting a P11D(b) form include the total amount of Class 1A National Insurance you need to pay, not the difference from your previous version.
Example 2 You sent a P11D(b) form showing you needed to pay £10,000 of Class 1A National Insurance and you realise you forgot to add £500, the new form should show the amount as £10,500.
You must submit a paper form, even if you originally submitted online.
The forms will show the most recent tax year. Write a different tax year on the form if you need to report for a different year. You must write:
- that you’re using the form to correct an error made in a different year to the one printed on the form
- the tax year you’re making the amendment for
Where to send forms
Send new or corrected paper forms to:
P11D Support Team
HM Revenue and Customs
You may be charged a penalty if you carelessly or deliberately give inaccurate information in your tax return that results in you:
- not paying enough tax
- over-claiming tax reliefs