Last reviewed: 29 September 2026 · Reviewed by IFM's qualified accountant
The P11D is not the only document involved. The employer may also need a P11D(b), Class 1A payment, payroll entries and information for the individual.
What should you know about start with a benefits register?
Record each benefit when it begins, changes or ends. Note the recipient, provider, cost, availability, private use, employee contribution and supporting contract. Waiting until June 2027 to reconstruct 2026/27 benefits invites errors.
Company cards and director's loan accounts should be reviewed for personal expenses. A payment can be salary, a benefit, a loan or a business expense depending on the facts; it cannot remain “drawings” indefinitely in a company ledger.
Benefits provided to family or household members because of the director's employment can also be taxable on the director.
What should you know about p11D or payrolling?
An employer that validly registered to payroll a benefit before the 2026/27 tax year generally includes its taxable value through payroll during the year. The employee then pays Income Tax through PAYE, but the employer still needs the Class 1A and P11D(b) process where applicable.
For 2026/27, the voluntary online registration deadline was 5 April 2026. An employer not registered in time normally continues to report relevant benefits on form P11D after the year end.
Some benefits cannot be handled through the voluntary payrolling service in the same way, and cash or cash-voucher items can attract Class 1 rather than Class 1A National Insurance. Check the category, not just the name of the payment.
What should you know about the 2026/27 deadlines?
For benefits provided in 2026/27, ending 5 April 2027, P11D forms and the P11D(b) are due by 6 July 2027. The employer must also give affected employees the relevant information by 6 July 2027.
Class 1A National Insurance is due by 22 July 2027 if paid electronically, or 19 July 2027 by cheque. For 2026/27 the general Class 1A rate on benefits is 15%.
Those dates are separate from monthly payroll deadlines. A benefit being taxed through payroll does not remove the need to calculate and pay Class 1A or submit the P11D(b) where required.
What should you know about company cars and fuel?
The company-car benefit broadly applies a percentage based on the car's CO2 emissions and fuel type to its list price plus relevant accessories. The calculation uses list price, not simply the price the company paid.
For 2026/27, a zero-emission company car has a 4% appropriate percentage. Other percentages depend on emissions and statutory tables. Availability dates, capital contributions and payments for private use can alter the amount.
Employer-provided fuel for private use creates a separate fuel benefit based on the statutory multiplier and the car's percentage. Repaying only the private fuel in full and on time can prevent the charge; a token contribution usually does not reduce it proportionately. Use HMRC's 2026/27 tables and current advisory rates for the exact vehicle and period.
What should you know about vans, medical cover and subscriptions?
A company van can be exempt where private use is insignificant or limited to qualifying commuting under the rules. A van available for wider private use can produce a van benefit, with a separate fuel benefit where fuel is provided.
Private medical insurance paid by the company is normally taxable on the employee or director, using the cost to the employer subject to detailed rules. The company should retain the provider's schedule allocating cost between covered people.
Professional subscriptions can be exempt where the body appears on HMRC's approved list and membership is relevant to the employment. General memberships and private services are not made exempt by being useful to the director.
What should you know about loans and living accommodation?
An interest-free or cheap loan can be taxable. The small-loan exemption generally depends on the total balance not exceeding £10,000 at any point in 2026/27. The official rate and averaging or precise method then determine the cash equivalent where the exemption does not apply.
Living accommodation has complex rules, especially for directors with a material interest in the company. Exemptions for necessary or customary accommodation are narrower for such directors. Obtain advice before assuming accommodation near work is tax-free.
What should you know about exempt expenses and trivial benefits?
Genuine business-expense reimbursements can be exempt where the statutory conditions are met. Keep receipts and evidence of business purpose. Scale-rate subsistence requires qualifying travel and compliance with the relevant checking arrangements.
For 2026/27, a trivial benefit can be exempt where it costs £50 or less, is not cash or a cash voucher, is not contractual and is not a reward for work. A director of a close company has a £300 annual cap for otherwise qualifying trivial benefits provided to the director or their family or household.
The £50 condition is an exemption limit, not a deductible slice of a more expensive item.
What should you know about employee contributions and making good?
An employee payment can reduce some benefit values if it is required and actually made within the relevant deadline. The rule differs by benefit; a journal entry against a director's loan account may not always satisfy it.
Agree contributions in advance, collect them through a traceable route and retain evidence. For private fuel, full reimbursement under the prescribed basis is particularly important.
What should you know about corrections and late reporting?
If a filed 2026/27 P11D or P11D(b) is wrong, correct it using HMRC's current process. Do not wait for the next year. Late P11D(b) filing can attract a penalty of £100 per 50 employees for each month or part month, and late payment can bring interest and penalties.
Tell the employee about a correction because it can affect their tax code or Self Assessment. Reconcile HMRC's Class 1A charge to the company's payment.
What should you know about a clean year-end process?
Reconcile the benefits register to payroll, nominal ledgers, supplier reports, company vehicles and director loan accounts. Confirm leavers, availability dates and contributions. Calculate values, obtain approval, file by 6 July 2027 and schedule cleared payment by 22 July 2027 for 2026/27.
See payroll support for the relevant IFM service page. Use the Deadline Finder for standard first accounts, first confirmation statement and Corporation Tax dates. For VAT, payroll, personal tax and other obligations, check the tax deadlines calendar and your official records.
What should you know about controls for the next tax year?
Before providing a new benefit, document its tax category, expected cash equivalent, employee contribution and payroll or P11D route. Tell the recipient what information will appear on their record.
At least quarterly, reconcile benefit providers to payroll and leavers. Check company cars, fuel cards, medical-cover schedules, loans, vouchers and expenses. This catches changes while corrections and contributions can still be made properly.
After filing, retain calculations and acknowledgements with the payroll year-end file. Reconcile Class 1A paid to the P11D(b), and investigate any later HMRC tax-code change rather than assuming it is correct.
Give directors and employees a clear route to report missing or incorrect benefits. A provider schedule can contain leavers, duplicated dependants or the wrong availability date.
Correct source data first, then payroll or P11D reporting. This prevents the same error returning in the following year and creates evidence for any repayment or additional charge.
What should you read next?
Use the Deadline Finder for standard first accounts, first confirmation statement and Corporation Tax dates. For VAT, payroll, personal tax and other obligations, check the tax deadlines calendar and your official records.
What do people also ask about this topic?
What should you know about start with a benefits register?
Record each benefit when it begins, changes or ends. Note the recipient, provider, cost, availability, private use, employee contribution and supporting contract. Waiting until June 2027 to reconstruct 2026/27 benefits invites errors.
What should you know about p11D or payrolling?
An employer that validly registered to payroll a benefit before the 2026/27 tax year generally includes its taxable value through payroll during the year. The employee then pays Income Tax through PAYE, but the employer still needs the Class 1A and P11D(b) process where applicable.
What should you know about the 2026/27 deadlines?
For benefits provided in 2026/27, ending 5 April 2027, P11D forms and the P11D(b) are due by 6 July 2027. The employer must also give affected employees the relevant information by 6 July 2027.
What should you know about company cars and fuel?
The company-car benefit broadly applies a percentage based on the car's CO2 emissions and fuel type to its list price plus relevant accessories. The calculation uses list price, not simply the price the company paid.
Which official sources support this guide?
- https://www.gov.uk/employer-reporting-expenses-benefits
- https://www.gov.uk/employer-reporting-expenses-benefits/deadlines
- https://www.gov.uk/guidance/payrolling-tax-employees-benefits-and-expenses-through-your-payroll
General guidance, not advice for your situation.
