P11D Deadline
The deadline for P11D employee benefits reporting and Employee Related Security (ERS) returns is approaching. On 6 July, these must be submitted to HMRC or a penalty is issued. Here, we explore what to do if you miss the deadline.
What is a P11D?
A P11D is a form that must be completed each tax year, detailing any benefits-in-kind received by an employee. Employers are responsible for submitting the P11D online if they have less than 500 employees, or via payroll software if they have over 500 employees. They must also send employees a copy of their P11D by 6 July.
In addition, a P11D (b) must be filed by 6 July, which reports the total sum of Class 1A National Insurance Contributions (NICs) payable. Class 1A NICs are only paid on benefits-in-kind by the employer.
Examples of benefits include accommodation, company cars, vouchers, interest free loans and non-cash items. These should only be reported if they have not been taxed already through PAYE, and if they are not subject to tax exemption. Class 1A NICs must be paid electronically to HMRC by 22 July.
What is an ERS return?
An ERS return advises HMRC of any shares, share awards or other types of securities that are awarded to employees. These typically come from the employer, but may come from an employee benefit trust (EBT) or other source.
To file an ERS return, you will need to register a scheme under the PAYE service via your HMRC account. ERS returns should be filed online by 6 July.
What happens if you miss the deadline?
It won’t surprise many to learn that if P11D or ERS return deadlines are missed, HMRC charges a penalty. Companies who don’t submit on time can face a fine of £300 per late P11D, followed by £60 for each day the forms remain outstanding. For incorrect reporting, HMRC can charge a penalty of up to £3,000 per P11D.
If the P11D (b) is late, HMRC can charge £100 per 50 employees per month until the form is submitted. Late payments of Class 1A NICs incur additional penalties:
- 5% penalty if 30 days late
- Additional 5% if 6 months late
- Additional 5% if 12 months late
Companies who file ERS forms late will face an automatic fee of £100 for each return, with an additional £300 charged if the return is over three months late.
Can penalties be appealed?
Companies can appeal penalties within 30 days of receipt if they believe they have reasonable grounds, such as a death in the family, serious illness or a fire at the business property.
Can benefits be recorded through PAYE?
Businesses can choose to report taxable benefits-in-kind via the PAYE system instead of using P11D forms. This will become mandatory on 6 April 2027 anyway, with the exception of employer loans and accommodation.
If you have questions about P11D and ERS returns, or require help with preparing and submitting the relevant forms, speak to a reputable accountant for assistance.
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