6 July 2026
P11D and P11D(b)
P11D forms for each employee who received taxable benefits, plus the P11D(b) employer declaration, must be submitted to HMRC online. Employees must also receive their own copy by this date.
Payroll
Planning ahead for payroll benefits: what UK employers need to know before July
P11D deadline is 6 July 2026. We explain what UK employers must report, how payrolling benefits works, and what changes from April 2027.
May 2026 | Estimated read time: 5 min
The P11D deadline falls on 6 July every year, yet payroll teams across the UK still spend the final weeks of June scrambling for records that should have been in one place since April. Private medical invoices turn up in HR inboxes. Company car details sit with a director who has not yet replied. Mileage claims are somewhere in the accounting software, waiting to be reconciled.
None of this is unusual. But it is avoidable, and with mandatory payrolling of benefits arriving in April 2027, the administrative stakes are about to get higher.
What counts as a taxable benefit in kind?
A benefit in kind is any non cash item an employer provides to a director or employee that has a taxable value. Common examples include:
- Company cars available for private use.
- Private medical or dental insurance.
- Interest free or low interest loans above £10,000.
- Employer provided accommodation.
- Relocation expenses above the £8,000 exempt threshold.
- Non cash vouchers and subscriptions.
- Assets made available for personal use.
Not everything needs to go on a P11D. Trivial benefits under £50, genuine business expenses reimbursed on a like for like basis and items already taxed through payroll are excluded. The challenge for most owner managed businesses is knowing which category each item falls into and having the records to prove it.
The P11D deadline for 2025/26
For the tax year ended 5 April 2026, employers face three separate obligations:
19 July 2026
Cheque payment
Class 1A National Insurance is due by cheque where the employer does not pay electronically.
22 July 2026
Electronic payment
Class 1A National Insurance is due electronically. The Class 1A rate for 2025/26 is 15% of the taxable value of benefits.
Missing the P11D(b) filing triggers an automatic penalty of £100 per 50 employees for each month the form is late. Individual P11D penalties can reach £300 per form. HMRC does not send reminders.
What payrolled actually means and the one thing it does not remove
Employers who voluntarily payrolled their benefits during 2025/26 still need to file the P11D(b) employer declaration by 6 July 2026. Individual P11D forms for employees are not required where benefits were payrolled, but the employer declaration remains.
Class 1A National Insurance is still due on the same July timeline regardless of whether benefits were payrolled or reported on P11D.
Building a complete benefit record before the deadline
The practical problem most employers face is not knowing whether all benefits have been captured. A single list, built before the year closes, is the most reliable way to find out.
For each item provided during 2025/26, the record should confirm:
- Whether the benefit was taxed through payroll or needs a P11D.
- The dates it was available.
- Any employee contribution that reduces the taxable value.
- The supplier cost or HMRC approved method of calculation.
- Supporting documentation such as an invoice, contract or benefit statement.
Where records are missing, the employer must estimate and correct later. That creates additional admin, possible interest and the kind of HMRC query that takes weeks to resolve.
April 2027 change
The April 2027 change and why preparation matters now
From 6 April 2027, payrolling of benefits in kind becomes mandatory for most employers. Individual P11D forms will no longer be required. Income tax and Class 1A National Insurance on benefits will instead be collected in real time through payroll each pay period.
Two benefit types remain outside the mandatory scope initially: employment related loans and accommodation. P11D reporting will continue to be available for these, reflecting the complexity involved, particularly around the HMRC Official Rate of Interest, which can change during the year.
The 2025/26 tax year is, in practical terms, the final full year of traditional P11D reporting for most employers. That makes the period between now and July 2026 the right time to:
- Review whether your payroll software is ready for mandatory payrolling from April 2027.
- Identify which benefits will need to move to real time reporting and which will stay on P11D.
- Brief employees on the change, especially where monthly tax collection may affect take home pay.
How Crestfield Advisory supports payroll year end
Our Payroll Services team works with owner managed businesses throughout the year to keep benefit records current, prepare P11D and P11D(b) filings before the July deadline and manage the transition to payrolling of benefits in kind.
If your benefit records are incomplete or you are unsure how to handle a specific item, such as a director loan, a company car part way through the year or a benefit provided for only part of the tax year, we can review the position and confirm the correct treatment before forms are prepared.
Related support
Payroll Services
We can review benefits, payroll records and year end reporting so the employer has a clear process before deadlines arrive.
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