P11D filing to end
HMRC is scrapping the use of Form P11D to report benefits in kind from 2026. How will you need to account for tax and NI due after this?
Currently, over 4m P11D returns are filed each year. The forms are used to report taxable benefits in kind, e.g. company cars, and set out the taxable amount for the employee and the Class 1A liability for the employer. It is possible to account for benefits via the payroll system, but in some cases a Form P11D is still required to pay the Class 1A liability. HMRC has announced that from 6 April 2026, it will be mandatory to payroll all benefits in kind, with both tax and Class 1A paid via the payroll system.
There is no further detail at present, e.g. we don’t know whether Class 1A will be payable monthly during the tax year or in one payment by 6 July after the tax year end (as is the case now). Draft legislation will be published later this year.
Related Topics
-
MONTHLY FOCUS: SECONDARY INCOMES
In 2023 it was revealed that HMRC would enjoy new data-sharing information from online selling platforms from 1 January 2024, including eBay, Etsy, etc. This led to media speculation that innocent people selling second-hand items would soon be hearing from a tax inspector. In this monthly focus, we look at the tax consequences of starting a small trade, or taking a second job.
-
New online service for voluntary contributions goes live
If you have gaps in your NI history, you can pay voluntary contributions to increase your entitlement to certain benefits, e.g. the state pension. You can now do this online. How do you access the new service?
-
Investing in woodlands - what are your options?
Investing in woodlands comes with several tax breaks. To make the most of these should you invest personally or through a company?