Oxford Office - 01865 552 925  |  Witney Office - 01993 776 476 team@themgroup.co.uk

As we approach the mid-year mark, it’s not just the peak of summer gradually creeping closer but also the deadline for submitting your P11D. Any business providing employees with expenses and benefits throughout the year must have this form in the HMRC by the 6th of July. Failing to submit this form or submitting incorrect information can result in penalties.

Related to the P11D is the Class 1A NIC, which must be paid by the 19th of July. The reporting in the P11D will impact the payment of the Class 1A NIC. Hence, these must be tackled in unison. Failure to pay by the due date will also result in penalties.

Oxford Business Accountant

Here’s all you need to know to complete it correctly and on time.

What is the P11D?

The P11D tax document is for reporting expenses and benefits you, as an employer, provide to your employees during the tax year. These are taxable expenses and benefits that need to be reported to HMRC. HMRC then use this information to calculate the employee’s tax liability.

Common expenses and benefits relevant to the P11D are:

  • Company cars and fuel
  • Health insurance
  • Accommodation or relocation costs
  • Subsistence allowances, such as lunch and travel expenses
  • Personal entertainment expenses
  • Interest-free or low-interest loans.

What is the Class 1A NIC?

The Class 1A National Insurance Contributions (NICs) are a type of tax paid by employers on certain employee expenses and benefits. Class 1A NICs are calculated based on the value of the benefits or expenses provided and the rate for the current tax year. Employers are required to pay Class 1A NICs on behalf of their employees to HMRC, and these contributions are used to fund the UK’s social security programs.

Submitting the P11D & Class 1A NIC

Both the P11D form and the Class 1A NIC payment can be filed and paid either manually or online. For the P11D form, you will need to provide:

  1. Details of benefits provided to employees. E.g. specify if it was for company cars, health insurance, child care vouchers, etc.
  2. The cash equivalent value of each benefit or expense provided.
  3. The total amount of Class 1A NICs due.
  4. Employee details, including their name, address, and national insurance number.
  5. The employer’s reference number.
  6. The tax year for which the form is being completed.

If in doubt, work with a trusted UK tax professional to ensure you have the right information and calculations. The MGroup has been supporting UK businesses for decades. We help you do it right, on time and ensure all benefits have been maximised for your business accounting.

For tax services that drive your business forward, contact The MGroup today.

The MGroup

Like to know more about how The MGroup can help you or your business?

Call our offices in Oxford 01865 552 925 & Witney 01993 776 476 or use our form.

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