If you run a limited company and provide any perks to yourself or your staff, the P11D is a form you need to know well. A P11D is the annual return that tells HMRC about taxable benefits in kind given to directors and employees outside of payroll, from company cars to private medical insurance.
July is the month it all comes to a head. The filing deadline for 2025/26 P11Ds fell on 6 July 2026, and the employer’s Class 1A National Insurance is due by 22 July 2026. If you have already filed, there is one payment left to make. If the filing deadline slipped past you, there are steps to take now to limit the damage. This guide covers both, plus a major change arriving in April 2027 that every employer should be planning for.
What Is a P11D?
A P11D is submitted to HMRC for each director or employee who received taxable benefits or expenses during the tax year that were not put through payroll. It records the cash equivalent value of each benefit, which is used to work out the extra tax the individual owes.
Alongside the individual P11Ds, the employer files a single P11D(b). This is the summary return that declares the total Class 1A National Insurance the company owes on all the benefits provided. Both forms must now be filed electronically, and for 2026/27, employees, including directors, must report the benefit in their Self Assessment Tax Return if they are preparing one. Employers are not required to provide a copy of Form P11D by the same date.
What Counts as a Benefit in Kind?
Benefits in kind are broader than many directors expect. The most common items that need reporting include:
Company cars and fuel provided for private use
Private medical or dental insurance
Interest-free or cheap loans where the balance exceeds £10,000 at any point in the year
Living accommodation provided by the company
Gym memberships and similar perks
Not everything needs to go on the form. Trivial benefits costing £50 or less (capped at £300 a year for directors of close companies), one mobile phone per employee, and staff events within the £150 per head annual exemption are all exempt.
If you are unsure whether something you provide crosses the line, our payroll services team can review what you provide and confirm exactly what needs reporting.
Key P11D Deadlines for 2026
There are two deadlines that matter, and they are close together:
6 July 2026: file all P11D forms and the P11D(b) with HMRC, and give employees their copies
22 July 2026: pay the Class 1A National Insurance electronically (19 July if paying by cheque)
Class 1A National Insurance is charged at 15% of the total value of benefits for 2025/26, up from 13.8% in earlier years. To put that in context, £10,000 of benefits across your team now costs the company £1,500 in Class 1A NIC. Our employers NICs calculator can help you understand your wider employer National Insurance position.
Missed the 6 July Deadline? Act Now
If your P11D(b) has not been filed, penalties are automatic: £100 per 50 employees (or part of 50) for each month or part month the return is late. Even a small company with a handful of staff accrues £100 a month, and the charges build quietly until the return is submitted.
Late payment of the Class 1A NIC brings its own costs. HMRC charges interest from the due date, and a 5% penalty applies to amounts still unpaid after 30 days, with further 5% charges at six and twelve months.
The message is simple: file and pay as soon as possible, because the cost grows with every month that passes. If you are not sure where you stand, get advice before HMRC contacts you rather than after.
The Big Change Ahead: Mandatory Payrolling from April 2027
The traditional P11D is on its way out. From 6 April 2027, most benefits in kind must be reported and taxed through payroll in real time, with the tax collected from the employee’s pay each period rather than through a tax code adjustment the following year. The change was originally planned for April 2026 but was deferred by twelve months.
A few things are worth knowing now. The 2026/27 tax year, filed by 6 July 2027, is the last full P11D year for most benefits. Employment-related loans and living accommodation are excluded from mandatory payrolling for the time being, and the P11D(b) will still be needed to declare Class 1A NIC. HMRC’s registration window, expected to open in November 2026, applies to employers who want to voluntarily payroll employment-related loans and living accommodation benefits.
It is also worth warning affected employees early. Once benefits are payrolled, the tax comes out of monthly pay, so take-home pay will visibly fall even though the benefit itself has not changed. A short conversation now prevents a wave of payroll queries in April 2027.
How Taylors LLP Can Help
P11Ds sit right at the junction of payroll, tax and company compliance, which is why they catch so many businesses out. As experienced accountants in Edgware working with limited company directors across North London, we prepare P11Ds and P11D(b)s, calculate Class 1A liabilities, resolve late filing positions with HMRC, and help employers plan a smooth transition to payrolled benefits ahead of April 2027.
If your filing is outstanding, or you want your benefits reviewed before the payrolling rules change, speak to us sooner rather than later. The earlier the position is tidied up, the less it costs.
This article is based on tax rules for the tax year beginning 6 April 2026 and is intended as general guidance only, not personal tax advice. Rates and thresholds can change, and the right approach depends on your individual circumstances. Contact us for help.
