P11D and Benefits in Kind: What UK Employers and Employees Need to Know

If you provide perks to your employees beyond their salary — like a company car, private medical insurance, or interest-free loans — then P11D forms and Benefits in Kind (BIKs) are something you need to get right.

This guide explains what they are, who needs to file them, and how to stay compliant with HMRC rules.

A P11D is a form submitted to HMRC by employers. It details the value of any benefits or expenses provided to employees (or directors) that aren’t processed through payroll.

These are known as Benefits in Kind — and they may be taxable.

Benefits in Kind (BIKs) are perks or non-cash benefits that an employee receives in addition to salary. Some common examples include:

• 🚗 Company car or fuel
• 🏥 Private medical insurance
• 💻 Personal use of company assets (like laptops or phones)
• 🏠 Living accommodation
• 💳 Interest-free or low-interest loans (over £10,000)

These benefits often have a cash value assigned to them and may be subject to tax and National Insurance.

For the tax year 6 April 2024 to 5 April 2025, the deadline to submit P11D forms is:

🗓️ 6 July 2025

You’ll also need to:

• Provide a copy to affected employees by this date
• Submit P11D(b) to HMRC if Class 1A National Insurance contributions are due
• Pay any Class 1A NIC by 22 July (or 19 July if paying by post)

There are two ways to handle BIKs:

1. Through payroll (payrolling benefits) – Tax is collected in real time via PAYE, so a P11D form may not be needed.
2. Via the annual P11D form – If you don’t payroll benefits, you must report them using P11D forms at year-end.

If you’re not sure which route to take, it’s worth discussing with your accountant or payroll provider.

Failing to file or submitting incorrect information can lead to:

• Penalties from HMRC
• Interest on late payments
• Frustration and confusion for employees who receive incorrect tax codes

The P11D process can be complex—especially if you’re managing multiple employee benefits. Make sure:

• You’re tracking benefits throughout the year
• You know which benefits need reporting
• You meet all HMRC deadlines

Whether you’re unsure which benefits count or just need someone to handle the paperwork, we’re here to make the process stress-free.

Contact us today to get your P11Ds sorted on time — and avoid any HMRC headaches.