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UK Payroll Glossary

P11D

A P11D is the form employers submit to HMRC each year to report benefits-in-kind provided to employees or directors that were not taxed through the payroll. Benefits-in-kind are non-cash perks — company cars, private medical insurance, interest-free loans over £10,000, and similar items — that have a taxable value HMRC requires to be declared. Employers must give a copy to every affected employee and file with HMRC by 6 July following the end of the tax year. Class 1A National Insurance on the total value of benefits is due shortly after.

Last updated May 2026

What goes on a P11D

A P11D lists benefits-in-kind — non-cash perks that have a taxable value under HMRC's rules — that an employer provided to an employee during the tax year but did not tax in real time through the payroll. The most common items are:

  • Company car — the taxable value is based on the car's list price, its CO₂ emissions rating, and the fuel type. HMRC publishes the percentage that applies to each band; the employer multiplies that percentage by the P11D value of the car.
  • Private medical insurance — the premium the employer paid on the employee's behalf is the taxable benefit.
  • Gym membership and health cash plans — covered if paid for by the employer as a personal benefit rather than a group rate open to all staff at their choice.
  • Interest-free or low-interest loans over £10,000 — HMRC applies an official interest rate to the balance; the notional interest the employee didn't pay is the taxable benefit. Loans under £10,000 in aggregate are exempt.
  • Employer-provided accommodation — taxed on a value derived from the property's annual value or, for high-value properties, a further charge based on cost.

Each category has its own valuation rules set out in HMRC's Employment Income Manual. The correct figure depends on the specifics of the arrangement, not a flat rule, so payroll software or an accountant should calculate each benefit's value.

Payrolling benefits is now the norm

Many employers now register with HMRC to payroll their benefits in kind — that is, to include the taxable value of each benefit in the employee's monthly payslip and collect the Income Tax in real time through PAYE. Since April 2026, payrolling benefits has been mandatory for new registrations; HMRC's direction of travel is for all employers to payroll eventually.

Once a benefit is payrolled, it does not need to appear on a P11D for that employee — the tax has already been collected through the normal payroll cycle. However, payrolling does not eliminate all year-end reporting: employers must still submit a P11D(b) return to declare the total value of all benefits provided (payrolled or otherwise) and pay the Class 1A National Insurance due on them. The P11D(b) is a summary form, not an employee-level form.

For employers who have not yet registered to payroll benefits, the traditional P11D route remains valid and a P11D must be filed for each affected employee.

Deadlines

Two firm deadlines apply each year after the tax year ends on 5 April:

  • 6 July — give a copy of the P11D to every employee named on it, and file all P11Ds with HMRC (plus the P11D(b) summary if applicable). Late filing attracts penalties of £100 per 50 employees per month.
  • 19 July (cheque) or 22 July (electronic payment) — pay the Class 1A National Insurance due on the total value of benefits shown on the P11D(b). This is the employer's NIC only; employees pay Income Tax on their own benefits either through the payroll (if payrolled) or via a tax code adjustment HMRC issues automatically after the P11D is filed.
In Ghugi terms: P11Ds are PDFs produced by your payroll or accounts software, just like payslips. Ghugi can deliver them to the right employees through the same batch upload flow used for monthly payslips — no separate portal or manual email required.

Related terms

PAYEPAYE is HMRC's system for collecting Income Tax and National Insurance directly from employees' wages before the money reaches…Payroll year endThe UK tax year runs from 6 April to 5 April. "Payroll year end" is the work an employer does to close one tax year and open the…National InsuranceNational Insurance is a separate UK contribution most workers and employers pay alongside Income Tax.

Authoritative source

gov.uk: P11D — employer reporting →

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Disclaimer: This glossary is for general guidance. Specific UK tax thresholds and statutory rates are checked at publication and re-reviewed every April; always verify against the official gov.uk pages for the current tax year. Ghugi is not a payroll provider and does not give tax or legal advice. For your situation, ask your accountant or HMRC directly.