Report Employee Benefits on form P11D by 6 July

P11D forms detail expenses and benefits in kind provided to employees and directors. For expenses and benefits provided in the 2023/24 tax year, the P11D form must be submitted by 6 July 2024. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software.

For 2023-24 the Class 1A National Insurance Contributions that are due on these benefits must be paid over to HMRC by 22 July 2024 (19 July 2024 if paying by cheque).

Reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties. This applies when an employer is paying back an employee’s actual costs or a HMRC approved benchmark rate. However, an exemption will need to be applied for with HMRC if the expenses are reimbursed at bespoke rates (that are not in line with costs incurred or the HMRC benchmark rates).

Trivial benefits of no more than £50 provided to employees on any single occasion need not be reported. This typically covers non-cash gifts to employees at Christmas and on their birthdays and can include gifts of food and alcohol. A record will need to be kept of the benefit awarded and it strictly cannot be linked to services performed as part of an individual’s employment/director duties.

Please be aware that directors of close companies (a company run by 5 or less shareholders) cannot receive more than £300 of trivial benefits in a given tax year.

Please contact 023 8046 1237 or email Joe Wilson if you would like more information on the above.

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