Benefits in Kind (BIK) cover several different perks or additional employer payments to their employees. They can include any of the following:
- Private Healthcare
- Loans
- Company cars
- Gym memberships
- And much more.
It is the employer’s responsibility to confirm all above-mentioned taxable benefits are on a P11D form and submitted annually to HM Revenue & Customs (HMRC).
It is worth noting that employers must include certain expenses on the P11D form. However, there are many different types of expenses, each with complicated rules, so it is best to seek advice if you are unsure.
The GOV.UK website also has an extensive list of all expenses if you are unsure and need to double-check.
The deadline for submitting P11D forms for the 2022/23 tax year is 6 July 2023.
Obtaining a P11D form
In previous years, P11D forms could be downloaded and filed by post with HMRC, but any submissions now need to be made through the PAYE online service.
In some instances, employers will have all expenses and benefits taxed through their payroll, so there may be no need to fill in a P11D form.
Missing the deadline and form errors – Do not pay the price
You can incur penalties if you submit your P11D forms beyond the 6 July deadline.
A fine of £100 per 50 employees is issued each month or part month that it is late, with further penalties issued if employers do not resolve matters.
It is also vital that the P11D form is correct, as HMRC can fine employers for any information they find inaccurate.
Therefore, it is best to check P11D forms carefully before submitting them.
