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As we've passed the end of the 2023/2024 tax year, it’s important for employers to remember their obligation to report any employee benefits in kind that they have provided throughout the year, before 6 July 2024. This reporting is done through the completion of a P11d form and failure to complete and submit the form to HM Revenue and Customs (HMRC) can result in penalties and fines.
Please note - HMRC have announced that reporting and paying income tax and Class 1A National Insurance Contributions (NIC) on benefits in kind through payroll will become mandatory from April 2026.
To switch from using the P11D reporting process to that of payrolling benefits, employers must ensure they register online with HMRC by no later than 5 April prior to the tax year they wish to begin doing so. For example, for tax year 2025/26, registration must be completed by 5 April 2025.
Employers are required to report any benefits in kind provided to their employees that are not part of their regular salary or wages. Examples of such benefits may include company cars, private healthcare, and interest-free loans. For Employee Benefits, the following are the most common benefits which need to be disclosed:
- Private Medical Insurance
- Health Cash Plans
- Dental Plans
- Group Critical Illness
The value of these benefits must be calculated and reported to HMRC through the P11d form.
It’s important for employers to remember that, even if they have provided benefits in kind to only a few employees, they are still required to complete and submit the P11d form.
Completing the P11d form can be a time-consuming and complex process, especially for employers with multiple employees and a wide range of benefit offerings. However, there are resources available to help employers navigate the process, including HMRC's guidance on completing the form and payroll software solutions that can automate the process.
Alternatively speak to your Employee Benefit Consultant who will be able to help.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue & Customs practice. Levels and bases of, and reliefs from taxation are subject to change. We recommend businesses seek professional advice from an accountant.
This article is intended to provide you with information and general guidance and does not provide financial advice. If you require such advice, you should engage the services of a professional accountant.
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