Answers · UK 2025/26
How are benefits in kind reported to HMRC in the UK?
Employers must report most benefits in kind (BIK) to HMRC annually on form P11D for each employee, with a P11D(b) summary to pay Class 1A National Insurance (13.8%). The deadline for P11D submission is 6 July following the tax year end, with Class 1A NI due by 19 July (22 July if paying electronically). Employers can alternatively payroll benefits throughout the year.
Full answer
Benefits in kind are non-cash benefits provided by employers to employees, such as company cars, private medical insurance, low-interest loans, and non-trivial gifts. Reporting via P11D: for each employee who received a reportable BIK during the tax year, the employer must complete form P11D showing the benefit type and cash equivalent value. Form P11D(b) is the employer's declaration of the total Class 1A NI liability (13.8% on the value of most BIKs). Deadlines: P11D and P11D(b) must be filed online with HMRC by 6 July (e.g., for 2025/26 the deadline is 6 July 2026). Class 1A NI must be paid by 19 July (or 22 July for electronic payment). Employees receive a copy of their P11D so they can check the figures. HMRC uses P11D data to adjust the employee's tax code to collect the Income Tax due on the benefit through PAYE in the following year, or via Self Assessment if the employee is required to file a return. Exempt benefits (no P11D needed): trivial benefits under £50, workplace canteens open to all staff, employer pension contributions, the first £8,500 of company car fuel (where applicable), cycle-to-work bikes, and annual parties up to £150/head. Payrolling as an alternative: see separate answer. Common BIK values for 2026/27: company car (percentage of list price based on CO2 emissions x BIK%), private medical (insurer premium cost), low-interest loans over £10,000 (official rate of interest, currently 2.25% for 2026/27 -- check HMRC for current rate). HMRC form P11D and P11D(b) must be filed via PAYE online or approved payroll software.
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.