Last updated: 14 October 2026
Can employers still file paper P11D forms?
No. HMRC no longer accepts paper P11D and P11D(b) forms, except from employers who have stopped trading (or their insolvency practitioner) or who are digitally exempt. Every other employer must file online, through HMRC’s PAYE Online service or commercial payroll software. The deadline for the 2025/26 forms was 6 July 2026, and Class 1A NIC was due by 22 July 2026 if paid electronically.
What P11D and P11D(b) are for
- P11D reports each employee’s or director’s taxable benefits and expenses, such as company cars, medical insurance and beneficial loans
- P11D(b) declares the employer’s total Class 1A National Insurance, at 15% on the value of benefits
Key dates for 2026/27 benefits
| Deadline | What |
| 6 July 2027 | File P11D and P11D(b) online for 2026/27 |
| 6 July 2027 | Give employees a copy of their P11D information |
| 22 July 2027 | Pay Class 1A NIC electronically (19 July by cheque) |
The big change: payrolling from April 2027
From 6 April 2027, most employers must report the most common benefits in kind through payroll in real time (RTI). Income tax and Class 1A NIC will then be collected each payday instead of after the year-end. Most remaining benefits follow from April 2028. Employer-provided loans and accommodation stay outside the initial scope.
What it means for you
- P11Ds will largely disappear for payrolled benefits
- You will need payroll software that can handle benefits
- Employees’ net pay will change, because tax on benefits is taken from pay
- Voluntary registration for payrolling closed on 6 April 2026, ahead of the mandatory regime
Preparing now
- List every benefit you provide, such as cars, fuel, medical cover, gym and vans
2. Check your payroll software’s readiness for the 2027 changes
3. Value each benefit using HMRC’s rules, for example list price × CO2 percentage for cars
4. Tell employees how their pay will change
5. Review salary sacrifice arrangements (OpRA)
Penalties
Late P11D(b) forms are charged £100 for each 50 employees for each month or part month late. Incorrect returns can be charged up to £3,000 per form. Late Class 1A payments incur interest and penalties.
Common benefits and exemptions
- Electric company cars are taxed at a low benefit rate (4% in 2026/27)
- Trivial benefits of up to £50 are exempt
- Annual parties of up to £150 a head are exempt
- Mobile phones (one per employee) are exempt
- Pension advice of up to £500 is exempt
See private medical insurance as a company expense.
Getting P11Ds right
Check every benefit’s value carefully. Common errors include using the wrong list price for company cars, forgetting fuel benefit, and missing benefits for directors. Report the correct cash equivalent, not the cost of the item, when the rules require it. Give employees their P11D information by 6 July, so they can check their tax codes.
Frequently asked questions
Do I need a P11D(b) if I have no benefits?
If HMRC sends you a notice to file, you must file it or tell HMRC that no return is needed.
Do directors need P11Ds?
Yes, for any benefits they receive. Directors are treated like other employees.
Can my accountant file P11Ds for me?
Yes. As your agent, we file through commercial software.
Will P11D(b) still exist after 2027?
Class 1A will be collected through payroll for payrolled benefits. Check HMRC guidance nearer the time.
Related: PAYE registration and payroll setup and small business payroll.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with P11Ds and benefits reporting. See our payroll services service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
