Expenses and Benefits Reporting

The deadline for submitting the annual returns of expenses and benefits (forms P11D and P9D) to HMRC is 6 July 2013.

The form P11D (P9D for those paid less than £8,500), is used to report the provision of benefits such as company cars or health cover to your employees, and to you where you are a director of your own company. Other benefits which may have to be reported include loans from the company to the employee/director, or the loan of assets such as a motorbike, boat or accommodation.

In theory all expenses paid to employees also need to be reported on the forms P11D. To avoid being taxed on those expense payments as income, the employee (or you on their behalf) has to make a claim for the amount paid to be treated as a valid tax deduction using a form P28 or P810, or by letter. This paper-chase can be avoided by applying for a dispensation from HMRC. We can help you with that.

Even if a dispensation is in place, any benefits provided such as; cars, fuel or health cover must be reported on the form P11D. Also class 1A NI must be paid by the employer at the rate of 13.8% on the value of the benefits provided, and reported on form P11D(b).

All of these forms can now be submitted online using an online service on the HMRC website. If you previously used the HMRC software: PAYE Basic Tools to submit forms P11D you now need to use this new online method, as PAYE Basic Tools does not include the P11D forms for 2012/13 or later years.

If you want to submit paper forms P11D and P9D you need to send them to:

HMRC (NIC&EO) Room BP2101
Lindisfarne House
Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1ZZ

If you need and help or advice please contact us.

Completing Forms P11D

It's time to complete forms P11D, to report expenses (which were not included in your dispensation agreement with the Tax Office) and benefits paid to your employees in 2011/12. The P11D details can be submitted online using the free HMRC software or using your own payroll software. Alternatively you can complete individual paper forms, or submit a schedule to the Tax Office containing details for all your employees. Whichever method you chose, the deadline is the same: 6 July 2012.


Be careful not to submit the same P11D details by two methods: say online and in paper form, as this will only confuse the HMRC computer!

Some other common mistakes made when completing forms P11D include:

- Not ticking the 'director' box when required
- Missing employee ID details such as date of birth, gender, and full name
- Including expenses which have been covered by a dispensation
- Incorrect calculation of benefits provided for part of the year, such as cars, vans and fuel. You should use number of days available/366 for 2011/12.
- Restricting the list price value of a company car to £80,000. This cap has been abolished from 6 April 2011
- Omitting the cost of accessories fitted to cars after delivery
- Using the incorrect rate of interest for beneficial loans - it was 4% for the whole of 2011/12.

We can help you with your P11D forms, which can be quite a nightmare if you have lots of employees who received benefits or expenses.