P11D forms: Reporting benefits in kind to HMRC

Published 11 March 2026

Table of contents

• What is a P11D form?
• When to use P11D and P11D(b) forms and what to report
• The P11D deadline
• How to submit a P11D online
• Alternatives to P11D filing
• Get ready to file benefits in kind with Xero
• FAQs on P11D and deadlines

Key takeaways

• P11D forms are used to report your employees’ benefits in kind. You need to submit a P11D form for every employee who received benefits at the end of the tax year, and a single P11D(b) form for your company, containing the Class 1A National Insurance due.
• P11D forms must be finalised and sent to HMRC (and shared with employees) by 6 July following the end of the tax year. The payment deadline for Class 1A National Insurance on benefits is 22 July.
• You can submit P11D forms using payroll software or HMRC’s PAYE Online Service. From April 2027, employers need to report and pay tax on benefits in kind by putting them through payroll each pay period. This is known as payrolling, which modern payroll software is designed for.

What is a P11D form?

Employers use HMRC’s P11D form to report the benefits in kind and taxable expenses their employees receive throughout the year.

Alongside the P11D form, you also need to fill out a single P11D(b) form for your company that contains information on how much Class 1A National Insurance you owe on expenses and benefits you’ve provided to employees. The forms work together to show what your employees have received, what the benefits are worth, and how much National Insurance is due to be paid on them.

When to use the P11D and P11D(b) forms and what to report

You send P11D forms once per year for your employees. A P11D form is submitted for every employee who receives benefits in kind and certain expenses each year. Benefits in kind are a non-cash benefit, and include things like private healthcare insurance, company cars, and gym memberships. This means you need to work out the cash amounts before reporting them to HMRC via your P11D. This ensures your employees pay the right amount of tax.

You can fill out P11D forms using the records in your payroll software, then submit them via HMRC’s PAYE Online Service or through payroll software. You also send a copy of the P11D form sent to your employees for their records.

You can report benefits annually, or throughout the year by payrolling them. To do this, you divide up the annual value of the benefits and spread them across each pay period.

• P11D forms only need to be submitted for employee benefits and expenses that haven’t been reported through payroll.
• You don’t need to complete annual P11d forms if you pay expenses and benefits to your employees through payroll. You must let HMRC know before the new tax year start date (6 April).

Benefits and expenses to report

You don’t need to report all your benefits and expenses, so check HMRC’s expense exemptions before filing. For example, business travel and certain employee phone costs may not need to be reported if you reimburse the actual costs employees incur (or use an HMRC-approved flat rate).

You also don’t need to report what the government calls trivial benefits. These are non-contractual benefits that cost £50 or less and aren’t cash (or a cash voucher), and aren’t given as rewards for work or performance.

Whether you put expenses through payroll or use P11Ds, you still need to report Class 1A National Insurance through a single P11D(b) form per employer.

Some minor or irregular expenses can be dealt with through a one-off payment to HMRC, known as a PAYE Settlement Agreement. Check HMRC’s list of expenses and guidance on PAYE Settlement Agreements to see if this is something you can do.

The P11D deadline

P11D forms must be submitted to HMRC and shared with employees by 6 July, following the tax-year end. For example, the 2025/26 tax year ends on 5 April 2026, so you must submit a P11D form for every employee and a single P11D(b) form by 6 July 2026.

The payment deadline for P11D(b) Class 1A National Insurance contributions is 22 July, or 19 July if you’re paying by cheque.

How to submit a P11D online

You need to have the correct information ready to fill out and file P11D and P11D(b) forms with HMRC. If you’re using a modern payroll system, the software will usually be able to calculate the value of benefits in kind and National Insurance due.

Here are the steps for submitting a P11D online:

1. Calculate the value of benefits. You need to record the monetary value of each benefit and expense an employee receives during the tax year. This calculation changes depending on the benefit type, so review HMRC’s list of expenses and benefits to work out how to value them. An accountant or bookkeeper can also help you value your employee benefits.
2. Work out Class 1A National Insurance due. Once you’ve worked out the total value of all employee benefits, multiply this figure by the current Class 1A National Insurance rate to work out what you owe. Record this on an annual P11D(b).
3. Track benefits and expenses throughout the year. To simplify calculations and form-filing at year end, track employee expenses and benefits with modern payroll software all year round. This will make it easier to draw up payroll reports and find the right figures.
4. Submit using HMRC’s PAYE online service or with payroll software. Once you have the right figures for P11D and P11D(b) forms, use HMRC’s PAYE online service or your payroll software to submit the information to HMRC. Businesses with more than 500 employees must use payroll software to submit these forms.
5. Keep payroll records. Make sure you keep copies of P11D and P11D(b) forms for at least 3 years. HMRC can request evidence of how you’ve calculated benefit values, and other records relating to benefits and expenses – so store these safely.

How benefits in kind and P11D reporting is changing

From April 2027, employers need to report benefits in kind through payroll instead of P11D forms. This means you can report and pay tax on benefits each pay period throughout the year by using your Full Payment Submissions (FPS).

To do this, you’ll need to divide the cash equivalent of the benefit across pay periods. In cases where you can’t provide an exact figure (for example, with predicted fuel costs), you’ll need to provide an estimate.

Employers can already report benefits through payroll – the only change is that this becomes mandatory from April 2027. There are some exemptions – for instance, employers will still be able to report employment-related loans and accommodation with P11D and P11D(b) forms. Payrolling these expenses will be voluntary at first. HMRC has provided some guidance and a timeline on P11D reporting changes. Make sure you review it ahead of April 2027 so you can get the right processes and payroll software in place.

What happens if you miss the P11D deadline

There are specific P11D penalties for late filing. If you miss the deadline for filing a P11D(b), you’ll receive a £100 penalty per 50 employees for each month or part month the P11D(b) is late. Late payments to HMRC will accrue interest and be subject to penalties too.

You may also be penalised if you provide inaccurate information on your P11D forms, whether intentionally or accidentally, if it means you overclaim reliefs or underpay your tax.

Alternatives to P11D filing

You can choose to put benefits through payroll now, ahead of the changes due in April 2027. This saves you having to gather data from across the tax year to fill out your P11D forms. Instead, you can report benefits in your FPS alongside employee pay and deductions.

To do this , you need modern payroll software in place that supports HMRC filing and reporting benefits in kind. Switching now also means when the changes come into place, you won’t need to adjust your processes – you’ll already be following the rules.

Get ready to file benefits in kind with Xero

Xero payroll software makes recording and reporting on employee benefits and expenses much easier. It does the expenses and benefits calculations for you as part of your usual payroll processes, and lets you report on benefits and expenses in your FPS, as you would employee pay and deductions.

If you still need to file P11D and P11D(b) forms for the time being, you can quickly pull up P11 reports in Xero to see the amounts due to HMRC. And Xero payroll software stores records securely, so you’re always ready for any HMRC requests.

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FAQs on P11D and deadlines

Here, we answer some common questions on P11D expenses and benefits, and filing with HMRC:

Do I need to give employees a P11D copy?

Yes. The deadline for this is the same as submitting a P11D and P11D(b) form to HMRC: 6 July.

Can I amend a P11D after I’ve submitted it?

Yes. If you notice a mistake or inaccuracy on a P11D, you need to submit a P11D correction form.

How long should I keep P11D records?

Keep p11d records for at least 3 years following the end of the tax year they relate to.

Do directors need a P11D if benefits are payrolled?

No. If all the directors’ benefits are payrolled throughout the year, you usually do not need to submit a P11D form. However, you must still submit a P11D(b) form to report Class 1A National Insurance on those benefits.

Do I submit a P11D for an employee who left mid-year?

Yes – you still need to report their benefits to HMRC. The employee can also request a copy of their P11D after leaving your company.

What counts as a trivial benefit for P11D purposes?

Trivial benefits, as defined by HMRC, must:

• cost £50 or less to provide
• not be cash or a cash voucher
• not be a reward for employee work or performance
• not be in the terms of an employee’s contract