Guidance

How to complete forms P11D and P11D(b)

Find out what you must show on forms P11D and P11D(b) to declare your company's expenses, benefits and Class 1A National Insurance contributions.

Overview

This guide explains how to complete 2017 to 2018 P11D and P11D(b) forms.

You can complete the forms online using:

You can find out more detailed information about expenses and benefits in the 480 expenses and benefits guide.

You do not need to submit P11Ds for payrolled expenses and benefits.

When you need to complete a P11D form

By law, at the end of each tax year you must give HMRC details of any expenses payments, benefits and facilities you have given to each of your employees or directors. You must also include any expenses payments, benefits or facilities provided to members of the director’s or employee’s family or household.

For most purposes ‘family or household’ is defined as the employee’s:

  • spouse or civil partner
  • sons and daughters and their spouses or civil partners
  • his or her parents
  • servants
  • dependants
  • guests

Read paragraph 1.22 of the 480 expenses and benefits guide for further information.

Use a separate form P11D for each director or relevant employee. You must also give the information you enter on the P11D to each director and relevant employee.

Do not complete a P11D if:

  • there are no taxable expenses, payments or benefits to be returned for an individual

  • the expenses and benefits have been taxed through your payroll

PAYE settlement agreements and exempt payments

You do not need to show expenses, payments or benefits in kind covered by a PAYE settlement agreement on a P11D, the exemption for paid or reimbursed expenses.

Read chapters 2 and 4 of the 480 expenses and benefits guide for further information.

When you need to complete a form P11D(b)

Use the form P11D(b) to declare the amounts of Class 1A National Insurance contributions you’re due to pay for the year.

You must also complete and sign a form P11D(b) if you’re liable to return any expenses payments or benefits on form P11D.

If you do not receive a form, or if you need a replacement, contact HMRC.

The form P11D(b) is split into 4 sections:

Amount made good, or from which tax has been deducted

In boxes with this heading on the form P11D enter any amounts which have been made good by the director or employee on or before 6 July 2018 and/or from which tax has been deducted under PAYE.

You’ll need to make a matching adjustment to the total benefits reported on form P11D(b), if you enter an amount from which tax has been deducted under PAYE where the benefit is liable to Class 1A National Insurance contributions.

Schedules and lists

Enter all the relevant information on a separate schedule if there is not enough space on form P11D.

Read paragraph 25.6 of the 480 expenses and benefits guide for further information.

Effects of VAT

Include the full amount of VAT on the form P11D even if it may not be recovered in whole or in part by you from HMRC.

Read paragraph 25.13 of the 480 expenses and benefits guide for further information.

Penalties

There are penalties if you do not make returns, or if you are careless or deliberately submit incorrect returns on forms P11D and P11D(b). The return date for the P11D and P11D(b) for 2017 to 2018 was 6 July 2018.

For further information go to:

From 6 April 2017 special rules determine the amount of a benefit which is treated as earnings from the employment, where the benefit is provided as part of an optional remuneration arrangement.

Optional remuneration arrangements are arrangements under which an employee gives up the right, or future right, to salary (commonly called salary sacrifice), or the right to some other form of cash remuneration in return for the benefit. They include flexible benefit packages with a cash option.

Where a benefit is chosen instead of some form of salary or pay, the taxable value of the benefit and the amount liable for National Insurance contributions is the greater of the amount of salary foregone and the taxable value of the benefit under the normal benefit in kind rules, ignoring any amount made good. Enter the amount foregone or relevant amount in the appropriate box.

Read paragraph 12 of the 480 expenses and benefits guide for further information.

Assets transferred (cars, property, goods or other assets)

Enter either:

  • the market value of the asset at the date of transfer
  • a figure based on the cost to you

Read chapter 6 of the 480 expenses and benefits guide for further information.

Payments made on behalf of the employee

Enter any amounts that your employee should have paid, but you paid instead.

Read chapter 26 of the 480 expenses and benefits guide for further information.

Tax on notional payments

PAYE applies to employment income taxable under new Part 7A ITEPA 2003 (certain income provided through third party arrangements), given in the form of:

  • a cash voucher
  • vouchers and credit tokens which are used to acquire assets or are themselves readily convertible to cash.
  • a readily convertible asset

PAYE also applies to employment income paid by an intermediary of the employer.

Enter tax on these notional payments not recovered from the director or employee within 90 days of the end of the tax year.

Vouchers and credit cards

Enter the total of:

  • the cost to you of providing any vouchers (including season tickets) which can be exchanged for money, goods or services

  • any extra cost to you in providing the money, goods or services for which the vouchers are exchanged

  • all expenses and other payments met by credit cards you provided, except expenses:

    • directly in connection with the cars at section F of the P11D

    • more appropriate to section N of the P11D

Do not include any vouchers, such as cash vouchers, which have suffered tax under PAYE, read Payments made on behalf of the employee for further information.

Living accommodation

Enter the cash equivalent of the living accommodation provided for the director or employee or their family or household by reason of the employment.

Read chapter 21 of the 480 expenses and benefits guide for further information.

Use the gross value for the rating which applied before the community charge was introduced to calculate the cash equivalent. If the accommodation is rented, use the amount of rent payable (including any amount attributed in respect of a lease premium) instead of the gross rateable value.

If the property did not have a gross rateable value, use your estimate of what the gross rateable value would have been if rates had continued.

Different rules apply in Scotland.

Read paragraph 21.9 of the 480 expenses and benefits guide for further information.

If the total cost of the accommodation and any improvements was less than £75,000, the cash equivalent will be the greater of:

  • the gross value for rating

  • the total of any rent payable by the employer

  • any amount attributed in respect of a lease premium, less any rent the employee pays

Read paragraph 21.11 and 21.12 of the 480 expenses and benefits guide to find out how to calculate the benefit if a lease premium is payable.

If the accommodation cost more than £75,000 (including improvements).Read paragraphs 21.13 and 21.15 of the 480 expenses and benefits guide find out how to calculate the benefit.

The value of living accommodation is exempt from tax and Class 1A National Insurance contributions in some circumstances. If the value of the accommodation is exempt, do not return a cash equivalent figure on the P11D.

Read paragraphs 21.2 and 21.3 of the 480 expenses and benefits guide for further information.

If, as well as providing the accommodation, you paid some of the employee’s bills (such as heat and light) or provided supporting benefits (such as furniture) show these at section M of the P11D for ‘other items’, whether or not the value of the accommodation itself is exempt from tax and Class 1A National Insurance contributions. If the:

  • contract was between you and the supplier, enter details of the benefit in the brown box
  • supplier contracted direct with the employee, enter details of the benefit in the blue box

Read paragraphs 21.17 and 21.22 of the 480 expenses and benefits guide for further information.

Mileage allowance payments

Enter the figure over and above the approved amount for each payment which is exempt from tax.

The approved amount is the number of business miles travelled (other than as a passenger) multiplied by the appropriate rates for the kind of vehicle used. These are shown in the table below.

Approved mileage allowance payments can only be made for travel in the employee’s own vehicle.

Kind of vehicle First 10,000 business miles in 2017 to 2018 Each business mile over 10,000 in 2017 to 2018
Cars and vans 45p 25p
Motorcycles 24p 24p
Cycles 20p 20p

Read chapter 16 of the 480 expenses and benefits guide for further information.

Cars and car fuel

Car benefit charge

Give details of cars made available for private use and the total car benefit charge.

The list price of a car will usually be the UK list price of the car on the day before the date of first registration, including:

  • VAT
  • car tax (where appropriate)
  • delivery charges
  • number plates

If the car had no list price when it was first registered, use the notional price. This is the price that might reasonably be expected to be the car’s list price if its manufacturer, importer or distributor had published a list price for an equivalent car for single retail sale in the UK.

Accessories must be added at their list price including VAT, fitting and delivery charges, including any:

  • optional accessories with the car when it was first made available to the director or employee, whether or not they were available at any time in this tax year

  • accessories added to the car after it was first made available to the employee, as long as they were added after 31 July 1993 and had a price of £100 or more

Capital contributions (payments made by the director or employee towards the cost of the car and accessories) are deducted from the price of the car and accessories (maximum deduction £5,000).

This figure is multiplied by the ‘appropriate percentage’ to give the car benefit charge for a full tax year.

The appropriate percentage for cars registered on or after 1 January 1998 depends on the carbon dioxide (CO2) emissions of the car and the type of fuel used.

You must enter the key letter from the table below to indicate the type of fuel or power used in each car.

Key letter Fuel or power type description
D Diesel cars (all euro standards)
A All other cars

The appropriate percentage for cars registered before 1 January 1998 and cars registered on or after that date with no approved CO2 emissions figure is based on the car’s engine size.

Engine size Registered before 1 January 1998 Registered after 1997 with no approved CO2 figure
0 to 1400cc 18% 18%
1401cc to 2000cc 29% 29%
Over 2000cc 37% 37%
Rotary engine cars 37% 37%

A small number of cars will not have an approved CO2 emissions figure. These will probably be rare or one-off models of cars, or cars imported from outside the EU. Supplements and reductions for the type of fuel also apply to these cars if they were first registered after 1998.

If the car was unavailable for part of the year the car benefit charge for that car is reduced proportionately. Any payments by the director or employee which are required for private use and have been paid in 2017 to 2018 are then deducted.

Full details, including the separate rules for calculating the benefit of cars which run on alternative fuels and classic cars are explained in chapter 12 of the 480 expenses and benefits guide.

This covers the common rules on deciding the prices used for tax purposes, on how to find the approved CO2 emissions figure and how to decide the appropriate percentage. It also covers the special rules for disabled drivers.

Read chapters 11,12,15 and appendix 1 of the 480 expenses and benefits guide for further information.

Car fuel benefit charge

No benefit charge will arise if:

  • fuel was provided solely for business travel

  • the director or employee was required to make good the whole of the cost of the fuel used for private motoring (including travel between home and work) and actually did so

  • a mileage allowance was paid covering no more than the cost of fuel used on business travel - if an allowance was paid which covered fuel costs for private travel, for example between home and work, a car fuel benefit charge will arise

If the provision of free fuel is withdrawn, the benefit charge is reduced in proportion to the number of days the car is available after the date of withdrawal.

There is no reduction if free fuel is reinstated later in the tax year.

Enter the total car fuel benefit charge for all cars available. Remember that the type of fuel or power used must be entered whether or not a car fuel benefit charge applies.

Read paragraph 13 of the 480 expenses and benefits guide for further information.

Vans and van fuel

Van benefit charge

The van benefit charge is £3,230 for 2017 to 2018.

The charge is reduced for periods when a van is unavailable. Any payments by a director or employee who are required to use the van for private use and have been paid in 2017 to 2018 are then deducted. If 2 or more directors or employees share private use of the van, the standard charge for each should be reduced on a just and reasonable basis.

If the employees sharing the van are members of the same family or household and one of them is in an excluded employment, the fact that the van is available to that person should to be disregarded when making the sharing reduction to the benefit charge on the other employees.

Read Expenses and benefits: company vans and fuel for further information.

Van fuel benefit charge

The van fuel benefit charge is £610 for 2017 to 2018. This is charged on all vans when any private fuel is provided and the van benefit charge (before any reductions) is more than zero.

The rules in section F of the P11D under ‘Car fuel benefit charge’ apply equally to the van fuel benefit charge.

Read chapter 13 of the 480 expenses and benefits guide for further information.

Interest-free, low interest and notional loans

You do not have to report, loans used wholly for a qualifying purpose on a P11D.

Read appendix 5 of the 480 expenses and benefits guide for further information.

Enter the cash equivalent for each non-qualifying loan separately. If you’re a close company making loans to a director you may elect to treat all such loans which are in the same currency and which are owing at the same time as one loan. You make the election by showing the loans as a single loan on the form P11D. If you make any election the director will be bound by it.

Read paragraph 17 of the 480 expenses and benefits guide for further information.

Enter details of loans made to, or arranged for, a director or employee (their relatives) on which:

  • no interest was paid
  • the amount of interest paid was less than interest paid at the official rate

Read appendix 4 of the 480 expenses and benefits guide for the more information.

Confirm the currency used if it is not in sterling.

Only put an entry in the box for ‘Number of joint borrowers’ if there are any other joint borrowers that you are completing a P11D for, the (shared) benefit of the same loan. Enter the number of joint borrowers that have shared the total cash equivalent in the box. The total amount of the loan is not affected by the number of joint borrowers. In all cases show the full amount of the loan.

Include the annual ‘notional loan’ benefits under Section 446S Income Tax (Earnings and Pensions) Act 2003 for shares acquired by the director or employee at undervalue and partly paid shares.

Do not include Section 446U discharges of these notional loans. These need to be returned separately on employers return form 42.

For more information read:

If you know that the total amount outstanding on all loans, or all non-qualifying loans are £10,000 or less in 2017 to 2018, you should disregard them when completing section H of form P11D.

A loan made by a person other than the employer may in some cases fall within the rules of Part 7A ITEPA 2003 on employment income provided through third party arrangements and PAYE will apply to these amounts.

Read paragraph 1.26 of the 480 expenses and benefits guide for further information.

For up to date details of the official rate of interest (including average rate of interest for each tax year) read the Rates and allowances: beneficial loan arrangements guidance.

Private medical treatment or insurance

Enter the cost of all medical and dental expenses arranged and paid by you and all premiums paid for insurance against the treatment.

If you paid medical or dental expenses, or insurance against the treatment, arranged by your employee, enter the amount you paid at section B of form P11D.

Qualifying relocation expenses payments and benefits

Enter the excess over £8,000 of the total amount of all qualifying:

  • expenses payments (the gross amount)

  • benefits (cost to you as the employer less anything paid towards the cost by the director or employee)

  • provided accommodation

Qualifying expenses and benefits are those which are:

Exempt costs include many of the normal costs of relocation, such as:

  • estate agents’ and legal fees
  • stamp duty
  • house-hunting visits
  • removal costs

If you have difficulty valuing any benefits when calculating the excess over £8,000, contact HMRC before you complete form P11D.

Remember that the £8,000 limit applies to the whole relocation not just to items such as qualifying expenses, benefits provide this year. If there were qualifying items for this director or employee last year, include them when working out whether there’s an excess over £8,000. For non-qualifying relocation costs, go to sections M and N of the P11D.

Read chapter 5, appendix 7 and paragraph 32 of the 480 expenses and benefits guide for further information.

Services supplied

Enter the additional cost of any services supplied where the contract is between you and the service supplier.

Some employer provided services (whether on premises occupied by the employer or elsewhere) are exempt from charge where the private use of the service is not significant in the context of its use by the employee in performing their duties.

Read chapter 5 of the 480 expenses and benefits guide for more information.

Assets placed at the employee’s disposal

Enter the annual value of the use of the asset (or the rent or hire charge if this was greater).

Read paragraph 6.7 of the 480 expenses and benefits guide and paragraph 13 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Some employer provided assets (whether on premises occupied by the employer or elsewhere) are exempt from the charge where the private use of the asset is not significant in the context of its use by the employee in performing their duties. Certain types of benefits such as the use of vehicles (including boats and aeroplanes) are excluded from the exemption.

Read chapter 5 of the 480 expenses and benefits guide for further information.

Equipment provided to employees with a disability

There is no taxable benefit if an employer provides equipment (for example, a wheelchair or hearing aid) to an employee with a disability to enable the employee to take up or retain work, and where the employee also uses the equipment for significant private use.

Other items

Subscriptions

Enter details of fees and subscriptions arranged for and paid by you, or on your behalf. Include initial and annual subscriptions to clubs catering for leisure or sporting activities and so on.

Read paragraph 30 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide and paragraph 25.16 of the 480 expenses and benefits guide for further information.

Read Expenses payments made on behalf of the employee if the fee or subscription was:

  • arranged by the employee and was paid by you or on your behalf

  • paid to a professional body or learned society related to the employment

Educational assistance

Enter the cost of educational assistance provided where the contract is between you and the provider of the benefit. Include the value of scholarships awarded to children because of their parents’ employment. Do not include relevant payments for qualifying retraining courses (as defined by Section 311, ITEPA 2003).

Read chapter 18 of the 480 expenses and benefits guide for further information.

Non-qualifying relocation benefits and expenses payments

Read paragraph 32 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Benefits

Enter all relocation benefits (cost to you as the employer less anything paid towards the cost by the employee), which are:

  • not exempt (not listed in 480 expenses and benefits guide appendix 7)

  • not paid by the ‘relevant day’ or which fail one of the other qualifying conditions.

Read chapter 5 of the 480 expenses and benefits guide for further information

If you have any difficulty valuing any benefits contact HMRC with details before you complete the form P11D.

Expenses

Relocation Expenses

Include here any relocation expenses payments (gross amounts less any amount from which tax is deducted), which are exempt expenses (listed in appendix 7 of the 480 expenses and benefits guide) but which were paid after the ‘relevant day’ or which fail one of the other qualifying conditions.

Non-qualifying relocation expenses

Expenses which are not exempt expenses, and are not listed in appendix 7 of the 480 expenses and benefits guide should be entered at section N of the P11D. A beneficial bridging loan given to an employee as part of a relocation package will not qualify for relief under Section 271 ITEPA 2003. Some alternative relief may be due to the director or employee under Section 288 ITEPA 2003 if qualifying relocation expenses and benefits total less than £8,000.

Read chapter 5 of the 480 expenses and benefits guide for further information.

Prescribed limits

Normally payments of expenses of a personal nature are taxable. However where such payments are made to employees staying away from home overnight on business, they are exempt as long as the travel to that they relate to qualifies for relief and provided the amounts involved are within the prescribed limits.

These limits (which include VAT) are:

  • £5 per night for overnight stays anywhere within the UK
  • £10 per night for overnight stays outside the UK

If incidental expenses consist of different elements (for instance, a cash payment and a benefit in kind) the different elements must be aggregated to decide whether the prescribed limits have been exceeded.

If you make payments for incidental overnight expenses which are over the limits, the whole amount (not just the excess) is liable to tax and National Insurance contributions under the normal rules.

You only need to include an amount in section M of the P11D if part or all of such a payment consists of a benefit in kind.

Employer provided childcare

The following are exempt from tax and National Insurance contributions and do not need to be shown on form P11D:

  • places made available in a nursery provided by the employer

  • other qualifying or directly contracted childcare up to the exempt amount for the employee

  • childcare vouchers that can be exchanged for qualifying childcare up to the exempt amount

Relevant exempt amount

If your employee joined your scheme on or before 5 April 2011 the first £55 per week will be exempt from tax or National Insurance contributions.

For employees who join your scheme on or after 6 April 2011 there are reduced exempt amounts for higher earners.

For more information, read the Employer Supported Childcare guidance.

Read chapters 5 and 6 and appendix 11 of the 480 expenses and benefits guide and paragraph 29 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide, for further information.

You should enter on the P11D:

  • the whole cost of providing non-qualifying childcare

  • the cost of providing qualifying childcare that exceeds the relevant exempt amount for the employee - only enter the excess over the relevant exempt amount

Enter the amount in section M unless childcare vouchers are used when you should enter the amount in section C of the P11D.

Other benefits

Enter details of expenses incurred in, or in connection with, the provision for the director or employee of any benefits or facilities of whatever nature not returned under any previous heading where the contract to provide the benefit was between you and the provider.

Income Tax paid to HMRC

Enter the amount of Income Tax paid to HMRC in the year which the company failed to deduct from remuneration paid to a director, irrespective of the year in which that remuneration was paid. Do not include any tax on notional payments you have already entered in section B of the P11D.

Read chapter 19 of the 480 expenses and benefits guide for further information 19.

Expenses payments made on behalf of the employee

Take care not to enter amounts that are entered in section C of the P11D.

Travelling and subsistence payments

Enter the total non-exempt expenses reimbursed on items such:

  • fares
  • hotels
  • meals

This includes travel between home and a permanent workplace for UK employments and employments performed wholly outside the UK not included above.

Read chapters 8, 9 and 10 of the 480 expenses and benefits guide for further information.

Entertainment

Enter all payments made exclusively for entertaining including:

  • the amount of any round sum allowance

  • sums reimbursed

  • specific allowances for entertaining

  • sums paid to third persons

If you carry on a trade, business, profession or vocation and make payments to a director or employee exclusively for entertainment, the payments should be disallowed when working out your tax liability.

Read chapter 20 of the 480 expenses and benefits guide for further information.

Trading organisations other than tonnage tax companies

If you carry on a trade, business, profession or vocation:

  • tick the box if any of the expenses payments have been, or will be, disallowed in your business’s tax computations
  • put a cross in the box if none of the expenses payments have been, or will be, disallowed in your business’s tax computations

Tonnage Tax companies

Tick the box if you have elected for your company’s profits to be calculated in accordance with paragraph 4, Schedule 22 Finance Act 2000.

Home Telephone

Enter any expenses reimbursed in connection with a telephone at the home of the employee where the employee contracted directly with the supplier.

If you contracted with the supplier to provide a home telephone to your employee, enter any expenses paid by you at sections K, L or M of the P11D.

Read appendix 1 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Other non-qualifying relocation expenses payments

Enter any amounts that your employees should have paid, but you paid instead, in connection with a relocation, where the expense was not an exempt expense (not listed in appendix 7 of the 480 expenses and benefits guide).

Read chapter 5 and appendix 7 of the 480 expenses and benefits guide and paragraph 32 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Incidental overnight expenses

Go to the box under ‘Incidental overnight expenses’ at section M of the P11D for details of prescribed limits. Enter details in box N of incidental expenses payments exceeding the prescribed limits which are made up of a cash payment, non-cash vouchers or a credit card payment.

Read chapter 8 and appendix 8 of the 480 expenses and benefits guide and paragraph 31 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.

Other expenses

Enter details of expenses incurred in, or in connection with, the provision for the director or employee of any benefits or facilities of whatever their nature not returned under any previous heading.

P11D Working Sheets

There are working sheets to help you calculate the cash equivalent of benefits for:

  • living accommodation
  • cars and car fuel
  • vans
  • interest-free and low interest loans
  • relocation expenses
  • mileage allowance payments

Get more information

If you have any difficulties completing P11D or the P11D(b) you can contact the Employer Helpline.

You can view or download the full range of HMRC booklets, forms and guidance at Business tax PAYE page or you can get copies from the HMRC Employer forms helpline.

Published 10 January 2019