P11D Frequently Asked Questions

What are the deadlines for P11D processing?

Simply, The Income Tax (Pay As You Earn) Regulations 2003 (Regulation 85) require that the employer is required to submit all relevant and completed P11D and P9D returns to HMRC by 07 July each year. In practice, this means that they must be received at HMRC on or before 06 July.

Regulation 94 requires the employer to provide a copy of the details shown on a P11D or P9D to the employee concerned by 07 July. This must be provided to every ‘current’ employee – this is defined as being an employee who was employed on 05 April of the previous tax year (i.e. the last day of the tax year to which the P11D / P9D return relates). If the employee has ceased to be a current employee before 07 July, the employer will be regarded as having met his duties under the 2003 Regulations if the information is sent to the employee’s usual or last known address. For ‘former’ employees, i.e. one who was no longer employed on 05 April of the preceding tax year, the copy only has to be issued if it is requested by the former employee. If requested, the employer has to ensure that this reaches the former employee by 07 July, or within 30 days of receiving the request, whichever is the later.

I am starting to prepare my P11Ds. What do you recommend as essential reading / literature?

There are a few manuals and guides that are invaluable for all payrollers:

Booklet CWG5 – information about Class 1A NICs on benefits in kind
Booklet CA33 – specifically for Class 1A NICs on car and fuel benefit
Booklet 480 – the ‘bible’ of the P11D containing HMRC’s guidance on the applicable legislation
Booklet 490 – specifically for guidance on travelling and subsistence expenses

Although these can be accessed online, we recommend that these are saved electronically for reference throughout the year, as they are not just of value at P11D time. Always ensure that you have the most current version. In addition, there are some online tools and literature available on HMRC’s Website. We recommend:

HMRC’s P11D Guide – section-by-section guidance
HMRC Forms:
- P11D
- P9D
- P11D(b)
Online A-Z of Expenses and Benefits – detailed guidance on each
Dispensations – what it is, what can be covered and how to apply for one
PSAs – what are PAYE Settlement Agreements, what can be covered and how to operate them
P11D (INT) – HMRC’s document advising the official rate of interest to be used
Worksheets – to help with the calculation of the cash equivalent to declare at the relevant section of the P11D for:
- Living Accommodation (Working Sheet 1)
- Car and Car Fuel (Working Sheet 2)
- Vans (Working Sheet 3)
- Interest Free / Low Interest Loans (Working Sheet 4)
- Relocation Expenses (Working Sheet 5)
- Mileage Allowances (Working Sheet 6)