If your business provides benefits or expenses to employees or directors (think company cars, private medical insurance, or interest-free loans) then you need to act now. The P11D filing deadline of 6 July 2026 is approaching fast, and missing it can result in automatic HMRC penalties.
Here is a clear, practical guide to what you need to do, what counts as a benefit in kind, and how to stay on the right side of HMRC before the end of June.
A P11D is the HMRC form used to report the taxable value of benefits in kind (BIK) provided to employees or directors during the tax year. For the 2025/26 tax year, any benefits that were not processed through payroll must be reported on a P11D form, submitted online to HMRC by 6 July 2026. You must also provide each affected employee with a copy of their P11D information by the same date.
Common benefits that require P11D reporting include:
Genuine business expenses that are wholly and exclusively for business purposes are generally exempt from P11D reporting.
For the 2025/26 tax year, Class 1A National Insurance is charged at 15% on the value of reportable benefits.
HMRC penalties for late P11D filing begin at £100 per 50 employees for every month, or part month, that the P11D(b) is late. On top of that, interest can accrue on any unpaid Class 1A National Insurance. These charges add up quickly, even for small businesses.
It is also worth planning ahead. The 2025/26 tax year is widely expected to be the last full year of traditional P11D reporting for most employers. From April 2027, payrolling of benefits in kind is expected to become mandatory, meaning the value of most benefits will need to be processed through payroll in real time. Now is an excellent time to start auditing your benefits and preparing for that transition.
Need help preparing your P11D forms or understanding your obligations? Our payroll team is ready to take it off your hands. Get in touch before the end of June so we have time to ensure everything is accurate and filed on time. Call us on 01443 834047 or email info@fooks.co.uk.
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