Date posted: 16th Jun 2025
The P11D filing deadline is fast approaching on 6 July 2025, and it’s essential that employers ensure all relevant benefits-in-kind (BIKs) provided to directors and employees during the 2024/25 tax year are properly reported to HMRC.
What Is a P11D?
Form P11D is used to report benefits and expenses provided to employees and directors that aren’t included through payroll. These benefits are taxable and often subject to Class 1A National Insurance contributions, with payment due by 22 July 2025 (or 19 July if paying by post).
Common Benefits to Report on the P11D
Here are some typical examples of benefits that need to be disclosed:
- Company cars and fuel for private use
- Private medical insurance
- Interest-free or low-interest loans (including Directors’ Loan Accounts – see below)
- Living accommodation provided by the company
- Assets transferred to employees (e.g. mobile phones, laptops used personally)
- Non-business travel and entertainment expenses
If any of these (or similar) benefits were provided between 6 April 2024 and 5 April 2025, they should be reviewed for P11D reporting.
Don’t Overlook Directors’ Loan Benefits
As part of its wider compliance drive, HMRC is actively targeting directors’ loan arrangements, especially those that involve interest-free or low-interest borrowing from the company.
If a director has borrowed more than £10,000 from their company and hasn’t paid interest at HMRC’s official rate (2.25% for 2024/25), this must be reported as a benefit in kind on the P11D.
Even if the loan was informal or repaid later, failing to report this can trigger:
- Personal tax liabilities for the director
- Class 1A NIC for the company
- Penalties and enquiries from HMRC if not declared properly
What You Should Do Now
To meet the deadline and stay compliant:
- Review all benefits provided to directors and staff during the 2024/25 tax year
- Check your records for any overdrawn Directors’ Loan Accounts or other informal loans
- Ensure calculations are correct and disclosures are made for all reportable BIKs
- Speak to your Clive Owen LLP adviser if you’re unsure what qualifies or how to report
We’re Here to Help
We can support you with:
- Preparing and submitting accurate P11D and P11D(b) forms
- Identifying any overlooked or unusual benefits
- Reviewing Directors’ Loan Accounts to assess if reporting is required
- Minimising the risk of penalties through timely compliance
To contact the team, click here.
