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As P11D deadlines approach, don’t get caught out, cautions TWP

Leading Surrey accountancy firm, TWP, has urged business owners and employers to stay informed on new rules around the reporting of employee benefits, to avoid penalties for being caught short-changed.

Employers that choose to offer certain benefits to staff may be muddying the National Insurance waters, says the firm, if perks are classed as benefits in kind (BIKs).

Paul Hawksley, Managing Partner at TWP, said: “Offering benefits to staff is an excellent way of boosting wellbeing and retention rates for employers, but business owners need to be careful with reporting these for tax purposes.

“Certain benefits, such as private healthcare or a company car, are classed as BIKs and are therefore submit to Class 1 National Insurance (NI).

“It is the employer’s responsibility to report any benefits given to staff to HM Revenue & Customs (HMRC) via a P11D or P11D(b) form.”

Employers may choose to report benefits themselves either via a P11D form or through ‘payrolling – reporting via their payroll – but Class 1 NI liabilities must be reported for each employee via this form.

A valid P11D and P11D(b) must be submitted by 6 July after the end of the relevant tax year, with Class 1 NI due by 22 July of the same year.

Missing the P11D(b) deadline may result in a penalty of £100 per 50 employees per month that the form is late, warned the firm, so getting it right is essential.

“It’s important for employers to remember when and how to submit a P11D,” continued Paul. “We know that it can create a significant administrative burden, which is why we’re here to help.

“One area that we see employers wrestling with particularly is exempt expenses and trivial benefits, which are not subject to Class 1 NI – including a mobile phone, certain business travel uniforms or workplace parking.

“Additionally – and perhaps most significantly – the requirements for P11D filing will be removed from April 2026.

“In this period of transition, employers are facing fast-approaching deadlines for P11D submission, as well as the challenge of determining taxable benefits and migrating all benefits into their payroll system.

“We urge any employer or business owner struggling with reporting employee benefits and Class 1 NI liabilities to speak to us and discuss their requirements with a member of our team.”

Contact us today to talk to a member of our team.