Guide to benefits in kind and the P11D form for contractors

If you are an employer, you need to file an annual P11D form for employees who received any benefits in kind from the company during the previous tax year.

Benefits include things like a company car and private medical insurance — perks provided in addition to salary.

As benefits in kind provide a personal advantage rather than a business expense, both the company and the individual may have additional tax to pay.

If you’re a company director, your accountant will usually file the P11D, but directors remain responsible for ensuring all HMRC submissions are accurate.

Who has to file a P11D and P11D(b)?

It is the employer’s responsibility to file a P11D. If you run your own company, you are also the employer, so this responsibility sits with you.

The company must also submit a P11D(b) if it has provided taxable benefits or expenses during the year.

The P11D(b) confirms the total value of benefits and the amount of employer’s National Insurance due.

This includes benefits provided to an employee’s family or household.

When you don’t need a form P11D

Some benefits can be processed through the payroll instead (known as payrolling benefits).

Where this applies, you may not need to submit a P11D for those items.

Examples include certain expenses such as business travel, uniforms and some reimbursed costs, provided they are treated correctly.

If an employee has no taxable benefits for the year, you do not need to submit a P11D for that employee.

Which benefits to report on a P11D

Some typical employee benefits that need to be reported on a P11D include:

• Company cars and fuel.
• Mileage allowances not covered by approved rates.
• Company vans provided for personal use.
• Private medical insurance, including dental cover.
• Interest-free or low-interest loans exceeding £10,000.
• Director’s loans exceeding £10,000.
• Assets or facilities made available for personal use.
• Relocation expenses above the exempt threshold.

The list above is not exhaustive, and exemptions may apply. See HMRC’s guidance for full details.

Assets made available for employees to use

Since April 2017, employees are taxed on company assets made available for private use on a pro-rata basis.

Previously, tax was based on the asset being available for the entire year, even if it was only used for part of that time.

This applies only where ownership of the asset is not transferred.

Don’t miss the P11D deadline or pay a penalty

P11D forms must be submitted electronically by 6 July following the end of the tax year.

Any Class 1A National Insurance due must be paid by 19 July (or 22 July if paying electronically).

If you miss the deadline, HMRC may issue a penalty of £100 per 50 employees for each month the forms are late.

Errors can also lead to further penalties, so accuracy matters.

You must also provide each employee with a copy of their P11D.

Tax on benefits provided to employees

The company pays Class 1A National Insurance on the value of benefits (currently 13.8% for 2025/26).

Employees then pay income tax on the value of those benefits through their tax code or Self Assessment.

For related guidance, see PAYE and payroll and limited company tax.

What if you’re a sole trader?

You don’t need to file a P11D if you’re a sole trader or partnership with no employees.