In this easy-to-read guide, we explain everything you need to know about P11D and P46(Car) forms, who needs to complete them, and what employers should be doing now.
P11D
What is a P11D?
A P11D is a form that is used to report benefits in kind provided to employees or directors during the tax year.
Benefits in Kind can include:
- Company cars
- Private medical insurance
- Interest-free or low-interest loans
- Living accommodation
- Fuel benefits
- Gym memberships
- Other non-cash perks
Employers must submit a P11D to HMRC for each employee receiving taxable benefits unless the employee or director is paying tax on all their benefits through payroll.
Why is the P11D important?
The P11D ensures employees pay the correct amount of tax on benefits they receive outside of their salary. HMRC uses this information to adjust employees’ tax codes where necessary.
It is also important to note that employers pay Class 1A National Insurance on most benefits reported through P11D.
Key deadlines
- 6 July – Deadline for submitting P11Ds and P11D(b)s
- 22 July – Deadline for paying Class 1A NICs electronically
Keeping accurate records throughout the year can make the reporting process much smoother.
P46 (CAR)
What is a P46 (Car)
The P46(Car) form is used to notify HMRC about any changes to the provision of company cars to employees, such as:
- A company car is first made available to an employee
- An employee changes company cars
- A company car is withdrawn
Why are P46 (Car) forms important?
Accurate and timely reporting to HMRC ensures employees are taxed correctly and helps prevent incorrect tax codes.
Key deadlines
Forms must be completed and submitted within 28 days of the end of the quarter.
