P11Ds – happy days are here again! BY Rebeccca Benneyworth

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As the last P35s are filed, thoughts necessarily turn to the related task of preparing forms P11D for those staff affected by them. Here are a few practical tips on completion, and slips to avoid!

All staff?

P11D is relevant to all directors and staff remunerated at a rate of 8,500 per annum including expenses and potential benefits. As the rate of National Minimum Wage is now 5.35 per hour. This means that staff working more than 31 hours a week will be subject to P11D in any event, as their rate of pay will exceed 8,500. Watch out, however, for staff joining part way through the year who earn at a rate of more than 8,500 per annum, but have only been employed for part of the year, so their gross pay on P14 may show up as below the limit. These staff must also have a P11D.

All expe...

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By Anonymous
21st May 2007 13:28

Confusing for some
I think the issue regarding expenses paid for by the employer is unclear. HMRC booklet 490 states that:-

This guide describes the tax and National Insurance contributions (NICs) treatment of business travel by employees.

It applies to all employers who pay travel expenses whether

• by reimbursing employees’ business travel costs
• by paying directly for business travel on behalf of employees, or
• by providing travel facilities for employees.
References throughout the guide to ‘employees’ apply equally to ‘office holders’, where
income from the office in question is subject to tax as employment income.

This is clear that an employer paying expenses on behalf of an employee still needs to report these expenses but some other HMRC guidance makes references to re imbursed expenses only.

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By trish01
21st May 2007 15:59

I know that P11D's have to be completed for new starters who may not have earned £8,500 during the tax year but what about employees who have left? I can't find any guidance on HMRC site to indicate if I need to complete a P11D for each employee who left the company during the tax year and would have earned more than £8,500.

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By NeilW
22nd May 2007 13:49

It's easier if you use the 'Net.
The P11D is a simple form to fill in once you realise that any business expenditure on employees is potentially reportable unless exempt, and that there is an excellent Internet resource that answers pretty much any question on the issue - in particular which part of the form HMRC expects an expense to go.


I've only found it wanting on the question of Life Insurance premiums (Group life cover, etc).


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