P11D filing to end
HMRC is scrapping the use of Form P11D to report benefits in kind from 2026. How will you need to account for tax and NI due after this?
Currently, over 4m P11D returns are filed each year. The forms are used to report taxable benefits in kind, e.g. company cars, and set out the taxable amount for the employee and the Class 1A liability for the employer. It is possible to account for benefits via the payroll system, but in some cases a Form P11D is still required to pay the Class 1A liability. HMRC has announced that from 6 April 2026, it will be mandatory to payroll all benefits in kind, with both tax and Class 1A paid via the payroll system.
There is no further detail at present, e.g. we don’t know whether Class 1A will be payable monthly during the tax year or in one payment by 6 July after the tax year end (as is the case now). Draft legislation will be published later this year.
Related Topics
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?