If you provide employees with benefits in kind, you must submit P11D forms to HMRC advising them of the benefits and pay employers Class 1A National Insurance Contributions.

This must be done by the 6th July following the end of the tax year.

For many organisations, this is an onerous task due to the risks associated with getting it wrong.

  • Understanding which benefits in kind attract Class 1A National Insurance
  • Ensuring the forms are completed correctly
  • Gathering the information in a timely manner to meet the deadline

What are the risks?

There are hefty penalties for the late or incorrect submission of P11D forms;

  • Non or overdue submissions - £100 per every 50 employees (or part 50) per month or part month
  • You will also be charged penalties and interest if you are late paying HMRC
  • Incorrect form penalties are based on a percentage of potential revenue lost according to tax payer behaviour and degree of culpability.

There is also a more significant risk than immediate penalties. For example, suppose P11Ds are submitted incorrectly for one employee. In that case, the chances are they will be wrong for all, as there has been a misunderstanding on how to classify and submit the benefits information. This could result in an employee either under or overpaying National Insurance. In addition, it would be a red flag to HMRC, triggering a full tax investigation, where they go through your records and processes with a fine tooth comb!

Outsource your P11Ds for peace of mind

Dataplan provides a P11D service that eliminates the hassle and worry of creating P11Ds. You provide us with the information about benefits your staff receive. We assess, clarify and ensure that the various benefit calculations and NI contributions are correct, submit them to HMRC and send them out to employees.

Depending on the benefit depends on the complexity of the calculations and requires an in-depth and up-to-date knowledge of the tax and BIKs (Benefits in Kind) system. For example, calculating hybrid vehicles requires finding out the number of electric miles per charge by vehicle type!

Our P11D service is provided by our Compliance and Legislation team, headed by Paul Chappell, and the service draws on the wealth of expertise and experience in delivering P11Ds for clients.

p11ds service

Understanding the P11D process

There is great complexity in producing P11Ds relating to the different benefits. Some are straightforward, whilst others have additional challenges due to how the data is provided or how it must be applied. It isn't one-size-fits-all.

Examples include different Healthcare providers using different year-end dates, meaning data needs to be supplied from multiple periods to assess the tax year obligations. Or benefits such as Beneficial Loans, which involve highly complex calculations and then there is the assessing of NI contributions.

Our P11D service involves the following stages;

1) We are not a faceless bureau, so your initial point of contact will be a discussion with one of our Compliance and Legislation team members, who can talk you through your options and understand your requirements. The complexity of your P11Ds will determine the price we quote.

We provide P11D services for many of our payroll clients, but it can also be provided as a stand-alone service even if you do not use our managed payroll service.

2) Following our initial discussion, we will provide you with a tailored proposal and schedule.

3) Once approved, the client sends over the employee details and information about their benefits. We are available to talk you through any questions or queries you may have.

4) From the data supplied, we start the calculations. We may need to contact you to clarify or request further information. This is where we can correct errors and ensure your benefits are efficient and compliant.

5) We complete the P11Ds for each employee and send them to the client for approval via our secure portal.

6) The client approves and returns the signed P11D(b). Once approved, we submit it to HMRC on

7) For Dataplan clients, we then upload the P11D forms to our online payslip portal, ePayslips, so each employee has a digital copy of their P11D. This saves the client the job of distributing to employees.

8) For non-Dataplan payroll clients, we will send the P11Ds to employees or HO for distribution, as agreed.

9) Dataplan provides the employer with the amount of Employers' Class 1A National Insurance payable together with HMRC bank account details to facilitate payment.

p11d service

Our team of payroll heroes are excited to hear from you!