What is a P11D?

What is a P11D?

The P11D is a statutory form required by HMRC from all UK based employers detailing the cash equivalents of benefits and expenses that they have provided during the tax year to their employees.

HMRC will use the information supplied on this form to assess the taxable benefit charge and amend your tax code accordingly. HMRC will issue a P800 Notice to the employee informing them of this change, HMRC will send your new tax code electronically to PSC who will apply the new tax code to your payroll record once it is received.

Please note that PSC cannot not change such notifications and it is your responsibility to query your tax code with HMRC should you believe it to be incorrect.

When is a P11D filed?

Your employer must complete and submit all P11D forms to HMRC by 6th July following the tax year in question. So, for example, your P11D for the tax year running April 2022 to April 2023 must be filed by 6th July 2023. Form P11D will be posted to employee’s home address as recorded on HRPTS by this date.

Can I access my P11D in HRPTS?

Unfortunately, for the 2022/23 tax year this is not possible.

However, PSSC is currently working with our supplier to bring this functionality in the future.

What is included in a P11D?

Generally speaking, any items the company pays for that the employee benefits from need to be included on the P11D form. Expenses and benefits that need to be recorded include:

• Section A – Assets Transferred
• Section B – Payments made on behalf of the employee
• Section C – Credit Cards and vouchers
• Section D – Living Accommodation
• Section E – Mileage Allowances
• Section F – Cars and car fuel
• Section G – Company Vans
• Section H – Beneficial Loans
• Section I – Medical Health
• Section J – Qualifying Relocation Payments
• Section K – Services Supplied
• Section L – Assets placed at employee’s disposal
• Section M – Other Items
• Section N – Expenses Payments

Please be advised form P11D is not issued to employees with no taxable benefits and/or expenses for the year.

What does HMRC’s term Company Car mean?

HMRC define the term company car as a car made available, without the employee becoming the outright owner, by reason of their employment.

It can refer to a car supplied automatically by an employer

Or

The scenario when someone takes up the option of giving up the right or future right to receive earnings in return for a benefit i.e. a lease car.

How much Car Benefit Tax will HMRC charge?

The amount of car tax an employee will pay is dependent on the following bullet points:

• Date car first registered
• List price of the vehicle
• CO2 emissions figure
• Fuel type
• No of days availability in year
• Monthly deductions from the employee’s net salary (Only applicable to those on the Salary Deduction Schemes)
• From April 2017, employees on the Salary Sacrifice contracts will pay the greater of the amount of cash sacrifice given up and the taxable value under the normal calculations.
• OpRa scheme

Calculation can be shown as follows:

([List Price of the vehicle] x [the appropriate HMRC percentage] x [availability days])

LESS

(Private Use Contributions made by the employee i.e. Deductions made out of Net Pay, however this is only applicable to those on the deductions schemes)

(Salary Sacrifice Scheme) Do I make private contributions towards my car?:

No, you have not made any payments, the reduction in your salary is not a payment and cannot be deducted as a private use payment.
If you are part of the OpRa Scheme, the amount you have paid in your salary sacrifice for the year is the taxable amount due on your BiK

What is the OpRa scheme?

Where employees entered into new arrangements on or after 6 April 2017, then their company car benefit will equal the greater of :

(i) the amount as calculated under standard company vehicle BIK , and

(ii) the gross salary sacrifice / gross cash allowance forgone*.

What are HMRC’s current Car Tax %?

https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2

Estimating the Car Benefit Tax you will pay:

You can see how much tax you might pay with HMRC’s company car and fuel benefit calculator.

https://www.gov.uk/tax-company-benefits/tax-on-company-cars

I have a leased car and have claimed mileage is this taxable?

Employees who have an HSC leased car are taxed on business miles paid above HMRC’s company car mileage rates (Advisory Fuel Rates). The excess amounts paid above HMRC’s Advisory Fuel Rates are included in Section E of the P11d form.

I entered “free miles” into my travel claims. How do these appear on the P11D?

Free miles are those miles that are not reimbursed by your employer, but are considered work-related mileage by HMRC. If you claim these, they reduce the amount of the mileage benefit reported on your behalf.

If the use of free miles results in a negative benefit, a separate letter will be sent to you detailing this amount for inclusion on your self-assessment or application for tax relief.

What should I do if I receive a P11D?

You should review your P11D for accuracy and if you believe, any details are incorrect contact PSC on 02895 362190 or by webform:  https://payrollquery.hscni.net/

You should keep your P11D safely as you will need this should you need to complete a Self-Assessment to HMRC.