Reporting Expenses and Benefits for Tax Year 2025/26
It’s important for employers to stay on top of their obligations around expenses and benefits. Here’s a helpful summary to help you meet the requirements regarding P11D expenses and benefits in kind.
Key deadlines and filing requirements
‘With reporting requirements evolving, now is a good time to review your processes and ensure everything is in order,’ says Karen Bunyan of Hargreaves Owen Chartered Certified Accountants in Halls Green. ‘If you are not currently payrolling employee benefits, the deadline to submit your P11D and P11D(b) forms is 6 July 2026. Both forms must be filed online and submitted at the same time.’
Late submissions can become costly. HMRC applies penalties on a monthly basis, with notices issued quarterly until the outstanding return is filed. Timely compliance is essential to avoid these charges.
Understanding the P11D(b)
You are required to submit a P11D(b) form if:
- You have submitted any P11D forms.
- You have provided expenses or benefits through payroll.
- HMRC has specifically requested that you file one.
The P11D(b) summarises the total Class 1A National Insurance contributions due on all taxable benefits and expenses provided to employees, whether reported via payroll or on P11D forms.
What if there’s nothing to report?
If HMRC has asked you to file a P11D(b) but you have no benefits or expenses to declare, you must still respond. This is done by confirming that no return is required, typically via a “nil return” Class 1A NI contribution notification. Ignoring such requests can still trigger penalties.
Changes to benefits in kind (BiKs)
HMRC is currently modernising how benefits in kind are reported and are now preparing for future mandatory payrolling of most BiKs through payroll software which is due to start from the 6 April 2027. You will need to start considering this transition and how it will interact with your normal monthly payroll process.
Registration for payrolling benefits for the 2026/27 tax year closed on 5 April 2026. Employers who registered can manage their BiKs through the online service, including reviewing and adjusting employee records.
If you did not register by 5 April 2026, you must continue using the traditional reporting method for the 2026/27 tax year:
- Submit a P11D for each relevant employee
- Submit a P11D(b) to report Class 1A NICs
The deadline for these submissions is 6 July 2027.
If you’re unsure about your obligations or need support preparing your submissions, seeking professional advice can help you stay compliant and avoid penalties. Hargraves Owen Chartered Certified Accountants is conveniently located near Baldock, Hitchin and Letchworth. Arrange a free initial discussion without obligation.