Guidance

How to complete P11D and P11D(b)

Find out what you must show on P11D and P11D(b) to declare your company's expenses, benefits and Class 1A National Insurance contributions.

From:
HM Revenue & Customs
Published
10 January 2019
Last updated
6 April 2024 — See all updates

Overview

This guide explains how to complete the 2023 to 2024 P11D and P11D(b) for expenses and benefits for employers.

You must submit your P11D and P11D(b) through:

You can find more detailed information in expenses and benefits for directors and employees — a tax guide: 480.

You do not need to submit P11D for an employee if you’re paying tax on all their benefits through your payroll.

You’ll still need to submit P11D(b) so you can pay any Class 1A National Insurance you owe.

When you need to complete P11D

At the end of each tax year, you must provide details about any employees or directors (including their families or households) you have given:

  • expenses payments
  • benefits
  • facilities

For most purposes ‘family or household’ is defined as the employee’s:

  • spouse or civil partner
  • children — including their spouses or civil partners
  • parents
  • servants
  • dependants
  • guests

Read paragraph 1.11 of legal background to expenses payments and benefits (480: chapter 1) for more information.

You must use a separate P11D for each director or relevant employee. You must also give the information you enter on P11D to each director and relevant employee.

Do not complete P11D if:

  • there are no taxable expenses, payments or benefits to be returned for an individual

  • the expenses and benefits have been taxed through your payroll

PAYE settlement agreements and exempt payments

You do not need to show expenses, payment or benefits in kind covered by a PAYE settlement agreement or covered by the exemption for paid or reimbursed expenses on P11D.

Read chapters 2 and paragraph 4.4 of chapter 4 of expenses and benefits for directors and employees — a tax guide: 480 for more information.

When you need to complete P11D(b)

Use P11D(b) to declare the amounts of Class 1A National Insurance contributions you’re due to pay for the year.

P11D(b) has 5 sections:

  • introduction — lets you know what to report and when to report it
  • employees — a list of employees who may require P11D, you can add more employees to the list
  • summary totals — enter the Class 1A National Insurance contributions due, and any adjustments to work out the National Insurance contributions payable
  • declaration
  • submissions — where you can submit the completed to HMRC

Amount made good or from which tax deducted

In boxes with this heading on P11D enter any amounts which have been made good by the director or employee on or before 6 July 2024 and from which tax has been deducted under PAYE.

You’ll need to make a matching adjustment to the total benefits reported on P11D(b), if you enter an amount from which tax has been deducted under PAYE where the benefit is liable to Class 1A National Insurance contributions.

Effects of VAT

Include the full amount of VAT on P11D even if it may not be recovered in whole or in part by you from HMRC.

Read paragraph 25.10 of the guidance on how to complete P11D forms (480: chapter 25) for more information.

Penalties

There are penalties if you do not make returns or if you submit incorrect returns on P11D and P11D(b), either carelessly or deliberately. The return date for P11D and P11D(b) for 2023 to 2024 is 6 July 2024.

For more information, read:

From 6 April 2017 special rules determine the amount of a benefit which is treated as earnings from the employment, where the benefit is provided as part of an optional remuneration arrangement.

Optional remuneration arrangements are arrangements where an employee gives up the right, or future right, to salary (commonly called salary sacrifice), or the right to some other form of cash remuneration in return for the benefit. They include flexible benefit packages with a cash option.

Where a benefit is chosen instead of some form of salary or pay, the taxable value of the benefit and the amount liable for National Insurance contributions is the greater of the amount of salary foregone and the taxable value of the benefit under the normal benefit in kind rules, ignoring any amount made good. Enter the amount foregone or relevant amount in the appropriate box.

Read optional remuneration arrangements (480: appendix 12) for more information.

Assets transferred (cars, property, goods or other assets)

You must enter either:

  • the market value of the asset at the date of transfer
  • a figure based on the cost to you

Read valuation of company benefits (480: chapter 6) for more information.

Payments made on behalf of the employee

Enter any amounts that your employee should have paid, but you paid instead.

Read remuneration in non-cash form (480: chapter 26) for more information.

Tax on notional payments

PAYE applies to employment income taxable under Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). For (certain income provided through third party arrangements), given in the form of:

  • a cash voucher
  • vouchers and credit tokens which are used to acquire assets or are themselves readily convertible to cash
  • a readily convertible asset

PAYE also applies to employment income paid by an intermediary of the employer.

Enter tax on these notional payments not recovered from the director or employee within 90 days of the end of the tax year.

Vouchers and credit cards

Enter the total of:

  • the cost and any extra cost to you of providing any vouchers (including season tickets) which can be exchanged for:
    • money
    • goods
    • services
  • all expenses and other payments paid by credit cards you provided, except expenses:
    • directly in connection with the cars in section ‘Cars and car fuel’ of P11D
    • more appropriate to section ‘Expenses payments made on behalf of the employee’ of P11D

Do not include any vouchers, such as cash vouchers, which have been taxed under PAYE, read ‘Payments made on behalf of the employee’ for more information.

Living accommodation

You must enter the cash equivalent of the living accommodation provided for the director or employee or their family or household by reason of the employment.

Read company provided living accommodation (480: chapter 21) for more information.

Use the gross value for the rating which applied before the community charge was introduced to calculate the cash equivalent.

If the accommodation is rented, use the amount of rent payable (including any amount attributed to a lease premium) instead of the gross rateable value.

If the property did not have a gross rateable value, use your estimate of what the gross rateable value would have been if rates had continued.

Different rules apply in Scotland.

Read paragraph 21.9 of company provided living accommodation (480: chapter 21) for more information.

If the total cost of the accommodation and any improvements was less than £75,000, the cash equivalent will be the greater of:

  • the gross value for rating
  • the total of any rent payable by the employer
  • any amount attributed to a lease premium, less any rent the employee pays

Read paragraph 21.11 and 21.12 of company provided living accommodation (480: chapter 21) to find out how to calculate the benefit if a lease premium is payable.

If the accommodation cost more than £75,000 (including improvements). Read paragraphs 21.13 and 21.15 of company provided living accommodation (480: chapter 21) to find out how to calculate the benefit.

The value of living accommodation is exempt from tax and Class 1A National Insurance contributions in some circumstances. If the value of the accommodation is exempt, do not return a cash equivalent figure on P11D.

Read paragraphs 21.2 and 21.3 of company provided living accommodation (480: chapter 21) for more information.

If, as well as providing the accommodation, you paid some of the employee’s bills (such as heat and light) or provided supporting benefits (such as furniture) show these in section ‘Other items (including subscriptions and professional fees)’ of P11D, whether or not the value of the accommodation itself is exempt from tax and Class 1A National Insurance contributions. If the:

  • contract was between you and the supplier, enter details of the benefit in the class 1A items section
  • supplier contracted direct with the employee, enter details of the benefit in the non-class 1A items section

Read paragraphs 21.17 and 21.22 of company provided living accommodation (480: chapter 21) for more information.

Mileage allowance payments not taxed at source

Enter the figure over and above the approved amount for each payment which is exempt from tax.

The approved amount is the number of business miles travelled (other than as a passenger) multiplied by the appropriate rates for the kind of vehicle used.

Approved mileage allowance payments can only be made for travel in the employee’s own vehicle.

Kind of vehicle First 10,000 business miles in 2023 to 2024 Each business mile over 10,000 in 2023 to 2024
Cars and vans 45p 25p
Motorcycles 24p 24p
Cycles 20p 20p

Read how to tax mileage payments for employees (480: chapter 16) for more information.

Cars and car fuel

Give details of cars made available for private use and the total car benefit charge.

The list price of a car will usually be the UK list price of the car on the day before the date of first registration, including:

  • VAT
  • car tax (where appropriate)
  • delivery charges
  • number plates

If the car had no list price when it was first registered, use the notional price. This is the price that might reasonably be expected to be the car’s list price if its manufacturer, importer or distributor had published a list price for an equivalent car for single retail sale in the UK.

Accessories must be added at their list price including VAT, fitting and delivery charges, including any:

  • optional accessories with the car when it was first made available to the director or employee, whether or not they were available at any time in this tax year

  • accessories added to the car after it was first made available to the employee, as long as they were added after 31 July 1993 and had a price of £100 or more

Capital contributions (payments made by the director or employee towards the cost of the car and accessories) are deducted from the price of the car and accessories (maximum deduction £5,000).

This figure is multiplied by the ‘appropriate percentage’ to give the car benefit charge for a full tax year.

The appropriate percentage for cars registered on or after 1 January 1998 depends on the carbon dioxide (CO2) emissions of the car and the type of fuel used. Read work out the appropriate percentage for company car benefits (480: appendix 2) for more information.

From 6 April 2020 to work out the appropriate percentage of the car, you’ll need the date the car was first registered and for:

  • hybrid cars — ‘zero emission mileage’ if the CO2 emissions figure is between 1 and 50g per km
  • fully electric cars — place a 0 in the CO2 emission field

Read how to work out the benefit of a company car (480: chapter 12) for more information.

You must enter the key letter from the following table to indicate the type of fuel or power used in each car.

Key letter Fuel or power type description
F Diesel cars which meet Euro 6d standard
D Diesel cars
A All other cars

The appropriate percentage for cars registered before 1 January 1998 and cars registered on or after that date with no approved CO2 emissions figure is based on the car’s engine size.

Engine size Registered before 1 January 1998 Registered after 1997 with no approved CO2 figure
0 to 1400cc 24% 24%
1401cc to 2000cc 35% 35%
Over 2000cc 37% 37%
Rotary engine cars 37% 37%

A small number of cars will not have an approved CO2 emissions figure. These will probably be rare or one-off models of cars, or cars imported from outside the UK or EU. Supplements and reductions for the type of fuel also apply to these cars if they were first registered after 1998.

If the car was unavailable for part of the year the car benefit charge for that car is reduced proportionately. Any payments by the director or employee which are required for private use and have been paid in 2023 to 2024 are then deducted.

Full details, including the separate rules for calculating the benefit of cars which run on alternative fuels and classic cars are explained in how to work out the benefit of a company car (480: chapter 12).

This covers the common rules on deciding the prices used for tax purposes, on how to find the approved CO2 emissions figure and how to decide the appropriate percentage. It also covers the special rules for disabled drivers.

For more information, read:

Car fuel benefit charge

There will be no benefit charge if:

  • fuel was provided solely for business travel
  • the director or employee was required to make good the whole of the cost of the fuel used for private motoring (including travel between home and work)
  • a mileage allowance was paid covering no more than the cost of fuel used on business travel — if an allowance was paid which covered fuel costs for private travel, for example between home and work, a car fuel benefit charge will arise

If the provision of free fuel is withdrawn, the benefit charge is reduced in proportion to the number of days the car is available after the date of withdrawal.

There is no reduction if free fuel is reinstated later in the tax year.

Enter the total car fuel benefit charge for all cars available. The type of fuel or power used must be entered whether or not a car fuel benefit charge applies.

Read taxable fuel provided for company cars and vans (480: chapter 13) for more information.

Vans and van fuel

The van benefit charge is £3,960 for 2023 to 2024.

The charge is reduced for periods when a van is unavailable. Any payments by a director or employee who are required to use the van for private use and have been paid in 2023 to 2024 are then deducted. If 2 or more directors or employees share private use of the van, the standard charge for each should be reduced on a just and reasonable basis.

If the employees sharing the van are members of the same family or household and one of them is in an excluded employment, the fact that the van is available to that person should be disregarded when making the sharing reduction to the benefit charge on the other employees.

Read expenses and benefits: company vans and fuel for more information.

Van fuel benefit charge

The van fuel benefit charge is £757 for 2023 to 2024. This is charged on all vans when any private fuel is provided and the van benefit charge (before any reductions) is more than zero.

The rules in section ‘Cars and car fuel’ of P11D under ‘Car fuel benefit charge’ apply equally to the van fuel benefit charge.

Read taxable fuel provided for company cars and vans (480: chapter 13) for more information.

Interest-free and low interest and notional loans

You do not have to report, loans used wholly for a qualifying purpose on P11D.

Read qualifying loans (480: appendix 5) for more information.

Enter the cash equivalent for each non-qualifying loan separately. If you’re a close company making loans to a director you may elect to treat all such loans which are in the same currency and which are owing at the same time as one loan. You make the election by showing the loans as a single loan on P11D. If you make any election the director will be bound by it.

Read beneficial loan arrangements (480: chapter 17) for more information.

Enter details of loans made to, or arranged for, a director or employee (or their relatives) on which:

  • no interest was paid
  • the amount of interest paid was less than interest paid at the official rate

Read beneficial loan arrangements (480: appendix 4) for more information.

Confirm the currency used if it is not in sterling.

Only put an entry in the box for the ‘Number of joint borrowers’ if there are any other joint borrowers that you’re completing P11D for, the (shared) benefit of the same loan.

Enter the number of joint borrowers that have shared the total cash equivalent in the box. The total amount of the loan is not affected by the number of joint borrowers. In all cases show the full amount of the loan.

Include the annual ‘notional loan’ benefits under Section 446S Income Tax (Earnings and Pensions) Act 2003 for shares acquired by the director or employee at undervalue and partly paid shares.

Do not include Section 446U discharges of these notional loans. These need to be returned separately on employers return form 42.

For more information, read:

If you know that the total amount outstanding on all loans, or all non-qualifying loans are £10,000 or less in 2023 to 2024, you should disregard them when completing section ‘Interest-free and low interest loans’ of P11D.

A loan made by a person other than the employer may in some cases fall within the rules of Part 7A ITEPA 2003 on employment income provided through third party arrangements and PAYE will apply to these amounts.

Read paragraph 1.14 to 1.21 of legal background to expenses payments and benefits (480: chapter 1) for more information.

For up to date details of the official rate of interest (including average rate of interest for each tax year) read the rates and allowances: beneficial loan arrangements guidance.

Private medical treatment or insurance

Enter the cost of all medical and dental expenses arranged and paid by you and all premiums paid for insurance against the treatment.

If you paid medical or dental expenses, or insurance against the treatment, arranged by your employee, enter the amount you paid in section ‘Payments made on behalf of employee’ of P11D.

Qualifying relocation expenses payments and benefits

Enter the excess over £8,000 of the total amount of all qualifying:

  • expenses payments (the gross amount)

  • benefits (cost to you as the employer less anything paid towards the cost by the director or employee)

  • provided accommodation

Qualifying expenses and benefits are those which are:

Exempt costs include many of the normal costs of relocation, such as:

  • estate agents’ and legal fees
  • stamp duty
  • house-hunting visits
  • removal costs

If you have difficulty valuing any benefits when calculating the excess over £8,000, contact HMRC before you complete P11D.

The £8,000 limit applies to the whole relocation not just to items such as qualifying expenses, benefits provide this year. If there were qualifying items for this director or employee last year, include them when working out whether there’s an excess over £8,000. For non-qualifying relocation costs, go to sections ‘Other items (including subscriptions and professional fees)’ and ‘Expenses payments made on behalf of the employee’ of P11D.

For more information, read:

Services supplied

Enter the additional cost of any services supplied where the contract is between you and the service supplier.

Some employer provided services (whether on premises occupied by the employer or elsewhere) are exempt from charge where the private use of the service is not significant in the context of its use by the employee in performing their duties.

Read non-taxable payments and benefits (480: chapter 5) for more information.

Assets placed at the employee’s disposal

Enter the annual value of the use of the asset (or the rent or hire charge if this was greater).

For more information, read:

Some employer provided assets (whether on premises occupied by the employer or elsewhere) are exempt from the charge where the private use of the asset is not significant in the context of its use by the employee in performing their duties. Certain types of benefits, such as the use of vehicles (including boats and aeroplanes), are excluded from the exemption.

Read non-taxable payments and benefits (480: chapter 5) for more information.

Equipment provided to employees with a disability

There’s no taxable benefit if an employer provides equipment (for example, a wheelchair or hearing aid) to an employee with a disability to enable the employee to take up or retain work, and where the employee also uses the equipment for significant private use.

Other items (including subscriptions and professional fees)

Subscriptions and fees

Enter details of fees and subscriptions arranged for and paid by you, or on your behalf. Include initial and annual subscriptions to clubs catering for leisure or sporting activities and so on.

F or more information, read:

Read the ‘Expenses payments made on behalf of the employee’ section if the fee or subscription was:

  • arranged by the employee and was paid by you or on your behalf

  • paid to a professional body or learned society related to the employment

Educational assistance

Enter the cost of educational assistance provided where the contract is between you and the provider of the benefit. Include the value of scholarships awarded to children because of their parents’ employment. Do not include relevant payments for qualifying retraining courses (as defined by Section 311, ITEPA 2003).

Read scholarships (480: chapter 18) for more information.

Non-qualifying relocation benefits and expenses payments

Read paragraph 32 in part 5 of Class 1A National Insurance contributions on benefits in kind (CWG5) for more information.

Benefits

Enter all relocation benefits (cost to you as the employer less anything paid towards the cost by the employee), which are not:

Read non-taxable payments and benefits (480: chapter 5) for more information.

If you have any difficulty valuing any benefits, before you complete P11D contact HMRC with details.

Expenses

Relocation Expenses

Include here any relocation expenses payments (gross amounts less any amount from which tax is deducted), which are exempt expenses (listed in appendix 7 of the 480 expenses and benefits guide) but which were paid after the ‘relevant day’ or which fail one of the other qualifying conditions.

Read non-taxable payments and benefits (480: chapter 5) for more information.

Non-qualifying relocation expenses

Expenses which are not exempt expenses and are not listed in relocation expenses (480: appendix 7) should be entered at section ‘Expenses payments made on behalf of the employee’ of P11D.

A beneficial bridging loan given to an employee as part of a relocation package will not qualify for relief under Section 271 ITEPA 2003. Some alternative relief may be due to the director or employee under Section 288 ITEPA 2003 if qualifying relocation expenses and benefits total less than £8,000.

Read non-taxable payments and benefits (480: chapter 5) for more information.

Prescribed limits

Normally payments of expenses of a personal nature are taxable. However where such payments are made to employees staying away from home overnight on business, they are exempt as long as the travel that they relate to qualifies for relief and provided the amounts involved are within the prescribed limits.

These limits (which include VAT) are:

  • £5 per night for overnight stays anywhere within the UK
  • £10 per night for overnight stays outside the UK

If incidental expenses are made up of different elements (for instance, a cash payment and a benefit in kind) the different elements must be aggregated to decide whether the prescribed limits have been exceeded.

If you make payments for incidental overnight expenses which are over the limits, the whole amount (not just the excess) is liable to tax and National Insurance contributions under the normal rules.

You only need to include an amount in section ‘Other items (including subscriptions and professional fees)’ of P11D if part or all of such a payment consists of a benefit in kind.

Employer provided childcare

The following are exempt from tax and National Insurance contributions and do not need to be shown on P11D:

  • places made available in a nursery provided by the employer
  • other qualifying or directly contracted childcare up to the exempt amount for the employee
  • childcare vouchers that can be exchanged for qualifying childcare up to the exempt amount

Relevant exempt amount

If your employee joined your scheme on or before 5 April 2011 the first £55 per week will be exempt from tax or National Insurance contributions.

For employees who join your scheme on or after 6 April 2011 there are reduced exempt amounts for higher earners.

For more information, read:

You should enter on P11D the:

  • whole cost of providing non-qualifying childcare

  • cost of providing qualifying childcare that exceeds the relevant exempt amount for the employee — only enter the excess over the relevant exempt amount

Enter the amount in section ‘Other items (including subscriptions and professional fees)’ unless childcare vouchers are used when you should enter the amount in section ‘Vouchers and credit cards’ of P11D.

Other benefits

Enter details of expenses incurred in, or in connection with, the provision for the director or employee of any benefits or facilities of whatever nature not returned under any previous heading where the contract to provide the benefit was between you and the provider.

Income Tax paid to HMRC

Enter the amount of Income Tax paid to HMRC in the year which the company failed to deduct from remuneration paid to a director, irrespective of the year in which that remuneration was paid. Do not include any tax on notional payments you have already entered in section ‘Payments made on behalf of employee’ of P11D.

Read tax not deducted from remuneration paid to directors (480: chapter 19) for more information.

Expenses payments made on behalf of the employee

Do not enter amounts that are entered in section ‘Vouchers and credit cards’ of P11D.

Travelling and subsistence payments

Enter the total non-exempt expenses reimbursed on items such as:

  • fares
  • hotels
  • meals

This includes travel between home and a permanent workplace for UK employments and employments performed wholly outside the UK not included in this guidance.

For more information, read:

Entertainment

Enter all payments made exclusively for entertaining including:

  • the amount of any round sum allowance
  • sums reimbursed
  • specific allowances for entertaining
  • sums paid to third persons

If you carry on a trade, business, profession or vocation and make payments to a director or employee exclusively for entertainment, the payments should be disallowed when working out your tax liability.

Read taxation of entertainment expenses (480: chapter 20) for more information.

If you carry on a trade, business, profession or vocation and:

  • any of the expenses payments have been, or will be, disallowed in your business’s tax computations enter your employer is a trading organisation
  • none of the expenses payments have been, or will be, disallowed in your business’s tax computations enter your employer is not a trading organisation

Tonnage Tax companies

Enter your employer is a trading organisation if you have elected for your company’s profits to be calculated in accordance with paragraph 4, Schedule 22 Finance Act 2000.

Payments for use of home phone

Enter any expenses reimbursed in connection with a telephone at the home of the employee where the employee contracted directly with the supplier.

If you contracted with the supplier to provide a home telephone to your employee, enter any expenses paid by you in sections ‘Services supplied’, ‘Assets placed at the employee’s disposal’ or ‘Other items (including subscriptions and professional fees)’ of P11D.

Read appendix 1 of Class 1A National Insurance contributions on benefits in kind (CWG5) for more information.

Other non-qualifying relocation expenses payments

Enter any amounts that your employees should have paid, but you paid instead, in connection with a relocation, where the expense was not an exempt expense (not listed in relocation expenses (480: appendix 7)).

For more information, read:

Incidental overnight expenses

Go to the box under ‘Incidental overnight expenses’ at section ‘Other items (including subscriptions and professional fees)’ of P11D for details of prescribed limits. Enter details in box ‘Expenses and payments made on behalf of the employee’ of incidental expenses payments exceeding the prescribed limits which are made up of a cash payment, non-cash vouchers or a credit card payment.

For more information, read:

Other expenses

Enter details of expenses incurred in, or in connection with, the provision for the director or employee of any benefits or facilities of whatever their nature not returned under any previous heading.

P11D Working Sheets

There are working sheets to help you calculate the cash equivalent of benefits for:

  • living accommodation
  • cars and car fuel
  • vans
  • interest-free and low interest loans
  • relocation expenses
  • mileage allowance payments

You do not need to send your working sheets to HMRC.

Get more information

If you have any problems completing P11Ds or P11D(b), contact the Employer Helpline.

View or download the full range of HMRC booklets, forms and guidance on the Business tax PAYE page, or get copies from the HMRC Employer Forms Helpline.

Updates to this page

Published 10 January 2019
Last updated 6 April 2024 + show all updates

  1. The vans and van fuel benefit charge has been updated including dates for the tax year 2023 to 2024.

  2. References to the paper P11D and P11D(b) form have been removed, these can now only be submitted online.

  3. Information about submitting a P11D form has been added.

  4. Guidance has been updated to include 2020 to 2021 changes.

  5. The 2019 to 2020 dates and rates have been updated in this guidance.

  6. The 2018 to 2019 dates and rates have been updated in this guidance.

  7. Added translation

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