The summer is quickly creeping up on us. One minute you’re closing off the tax year, the next you’re staring down a list of benefits you provided months ago and trying to work out what HMRC needs to know about them by the P11D deadline.
If your business gave employees anything beyond their salary in 2025/26, such as a company car, health cover, a low-interest loan, accommodation, or even a gym membership, you will need to report these soon.
Here’s a straightforward look at what’s required this year, and an important heads-up about how this whole process is changing.
There are three key dates that matter:
Penalties for missing the filing deadline are automatic and set at £100 for every 50 employees per month (or part month) the P11D(b) is late.
Late Class 1A NIC payments attract interest plus escalating percentage penalties starting at 5 per cent after 30 days, climbing further at six and twelve months.
The cost of forgetting to meet the deadline can quickly dwarf the cost of the benefits provided.
HMRC is winding down the traditional P11D form and from 6 April 2027, payrolling of most benefits in kind (BIK) becomes mandatory.
This means that income tax and Class 1A NIC will be collected through payroll in real time, every pay period, rather than reported once a year on a P11D.
This was originally planned for April 2026 but has been deferred by twelve months, giving employers and software providers more time to prepare.
Here are some steps that you can take now to make the transition easier:
If you’d like a hand reviewing your benefits, deciding whether to payroll early, or simply getting this year’s submission over the line, our team is here to help.
