P11D Deadline is Approaching: What UK Business Owners Need to Know in 2025
With the summer fast approaching, now is the time for UK employers to prepare for an important item on the tax calendar, the P11D submission. If you’ve provided benefits or reimbursed expenses to employees or directors during the 2024/25 tax year, this task should be high on your priority list.
Failing to file correctly and on time can result in fines, penalties, and administrative headaches. In this article, we break down what’s involved and how to stay compliant, as well as upcoming changes to be aware of.
What Is a P11D and Why Does It Matter?
The P11D form is used to report benefits in kind – non-salary perks that employees receive, such as company cars, private healthcare, and low-interest loans. These benefits are subject to tax and National Insurance contributions, so HMRC requires employers to report them annually.
For businesses, accurate and timely filing helps avoid penalties and demonstrates good governance. For employees, this reporting can affect tax codes and future tax liabilities.
What Needs to Be Declared on the P11D?
You’ll need to include:
- Non-cash benefits such as company cars, fuel, private medical insurance, and interest-free or low-interest loans.
- Reimbursed expenses such as travel, accommodation, or subsistence, unless they fall under exemptions. An exemption includes where an employer simply reimburses their employee the business element of such costs but, unless a flat rate expense has already been agreed with HMRC, flat rate expenses would need reporting.
Being clear about what qualifies can ensure that your log all relevant information and nothing is missed avoiding any issues with HMRC.
Important Dates for Your Diary
Here are the two key P11D-related deadlines for 2025:
- 6 July – Deadline to submit P11D forms to HMRC and provide employees with their individual copies.
- 19 July – Deadline for paying Class 1A National Insurance (or 22 July if paying electronically).
It’s also worth noting: all P11Ds must now be submitted electronically via HMRC’s PAYE online portal or via approved payroll software. Paper submissions are no longer accepted.
Big Changes Coming
Looking ahead to April 2027, HMRC is phasing in a payrolling of benefits system. This means that taxable benefits will be processed through the payroll system each month, rather than reported after the year-end via a P11D.
This change will shift the responsibility to employers to calculate and deduct the correct PAYE during the year. If you intend to payroll benefits from 2027, you must register with HMRC before the start of the relevant tax year.
What Are the Implications?
For employees, P11Ds can influence their tax code and personal liability. For employers, errors or omissions can result in fines, audits, or reputational damage. That’s why robust recordkeeping and a clear understanding of reportable benefits are so important.
Smart Tips for Smoother P11D Filing
- Keep comprehensive records of all benefits and expense reimbursements throughout the year.
- Use integrated payroll software that supports P11D submissions.
- Consult your accountant. Getting expert help for your accounts can ensure nothing is missed.
- Perform regular internal checks so you can identify and correct any inconsistencies early.
How We Can Help
At McKenzies, we offer expert guidance on P11D reporting and wider payroll compliance. Whether you need help understanding what’s taxable, managing Class 1A NICs, or preparing for the changes, our accounting team is here to assist.
We also provide outsourced payroll, bookkeeping, and year-end compliance support, so you can spend less time focussing on admin tasks and more time growing your business.
Need help with your P11D or payroll obligations? Get in touch with us today to ensure your submissions are stress-free and fully compliant.