As the end of the 2024/25 tax year has now passed, employers must prepare for one of the most important post-year-end payroll obligations: the submission of P11D and P11D(b) forms. These forms are required by HMRC to report employee benefits and expenses that have not been processed through payroll.
The deadline for submitting P11D and P11D(b) forms for the 2024/25 tax year is 6 July 2025. Additionally, any Class 1A National Insurance Contributions (NICs) due must be paid by 22 July 2025 if paying electronically, or by 19 July 2025 if paying by cheque.
Understanding P11D and P11D(b) Requirements
Form P11D is used to report any taxable benefits provided to employees and directors during the tax year. This includes benefits such as company cars, private medical insurance, and beneficial loans. Each employee who has received such a benefit must have a P11D submitted on their behalf, with a copy provided to them by the same 6 July deadline.
Form P11D(b) is used to declare the total amount of Class 1A NICs due on all benefits provided. Even if your organisation has payrolled benefits throughout the year, you may still be required to submit a P11D(b) to account for the National Insurance liability.
To complete these forms accurately, businesses must ensure their records on non-cash benefits are detailed, up-to-date, and include valuations where applicable.
Common Benefits That Must Be Reported
While not exhaustive, here are some of the most frequently reported benefits:
- Company cars and fuel
- Private medical insurance
- Interest-free or low-interest loans over £10,000
- Non-business travel or entertainment expenses
- Relocation expenses exceeding the £8,000 tax-free limit
It’s essential to correctly classify and value all reportable benefits to ensure compliance.
Penalties for Late or Incorrect Submissions
HMRC imposes financial penalties for both late and inaccurate submissions. If P11D or P11D(b) forms are not filed by the 6 July deadline, employers face a penalty of £100 per 50 employees for each month (or part of a month) that the return is late. Further penalties may apply where incorrect information is submitted or if Class 1A NICs are not paid on time.
Beyond the financial cost, late or inaccurate submissions can impact employee trust and the organisation’s reputation. Taking a proactive approach to managing P11D requirements is therefore not only a compliance matter but also a best practice in good governance.
Preparing for Mandatory Payrolling of Benefits
HMRC has confirmed that, from April 2026, the payrolling of benefits will become mandatory. This means many of the benefits currently reported on a P11D will instead be taxed through payroll in real time. Businesses should use the upcoming 2025/26 tax year as an opportunity to begin adapting to this change.
Voluntary payrolling is already available and recommended as a preparatory step. Employers should review their systems and internal processes now to ensure a smooth transition when the changes take effect.
How Qualitas Payroll Can Help
At Qualitas, we understand the complexities of benefit reporting and the administrative burden it places on businesses at year-end. Our payroll experts work closely with clients to identify, value, and report all taxable benefits accurately and on time.
We take full ownership of the process, preparing and submitting P11D and P11D(b) forms to HMRC, issuing copies to employees, and ensuring Class 1A NICs are calculated and paid correctly. Our proactive communication ensures you’re always aware of what’s required, with no last-minute surprises.
Looking ahead, we also provide guidance on transitioning to payrolling benefits in preparation for the upcoming 2026 mandate. Whether you’re new to P11D submissions or simply want to reduce the internal workload, we offer scalable support tailored to your business.
Next Steps for Employers
With the 6th July 2025 deadline fast approaching, now is the time to:
- Review benefits provided during the 2024/25 tax year
- Ensure all records are accurate and complete
- Decide whether to payroll benefits going forward
- Seek expert assistance to manage your P11D responsibilities
Let Qualitas Payroll take care of it for you: ensuring compliance, accuracy, and peace of mind.