Newsletter - June 2024

Reminder: P11D Reporting for Private Medical Insurance, Cash Plan, and Critical Illness Cover.

As the deadline for completion and submission of the P11D forms approaches, following the end of the tax year, we want to remind you of your obligation to report employee benefits and expenses. Specifically, this includes Private Medical Insurance, Cash Plans, and Critical Illness Cover provided to your employees. These benefits are considered Benefits in Kind (BIK) and must be included on the P11D form.

Click here to find out why this matters, how to report benefit and tax implications.

Businesses also have the option to payroll their benefits in kind as an alternative to submitting P11Ds for each employee. This method ensures that the correct tax on benefits is deducted in real-time, avoiding potential confusion with PAYE coding changes. Payrolling benefits can significantly reduce P11D reporting requirements, lower risk, and free up valuable administration time.

Starting from 6 April 2026, payrolling of benefits in kind will become mandatory, and Class 1A NICs will be collected through the payroll, eliminating the need to submit a P11D(b) at the end of the tax year from 2026/27 onwards.