P11D & Benefits in Kind Compliance Check

Why this matters

Employers who provide employees or directors with benefits in kind — company cars, private medical insurance, interest-free loans, gym memberships, or other non-cash perks — must report these to HMRC each year, either on a P11D form per employee or through payrolling if registered in advance. For the 2025/26 tax year, P11D and P11D(b) forms must reach HMRC by 6 July 2026, with Class 1A National Insurance Contributions on those benefits due by 22 July. Missing the deadline triggers automatic penalties of £100 per 50 employees for each month the return is late, and HMRC can also charge penalties and interest on unpaid Class 1A NICs.

Many small businesses underestimate how many perks count as taxable benefits — season ticket loans, staff discounts above a trivial threshold, company-funded gym memberships, and even some home-working equipment can all trigger a reporting obligation. From April 2026, payrolling of most benefits in kind became mandatory for many employers as part of HMRC’s ongoing digitisation of the benefits system, with some employers required to register and operate payrolling for the first time. Getting this wrong — by under-reporting benefits, missing the deadline, or filing inconsistent figures between payroll and the P11D — increases the risk of an HMRC compliance check and back-dated tax and NIC liabilities.

What you'll need

• A list of any non-cash benefits or perks provided to employees or directors in the last tax year
• Knowledge of whether you currently payroll any benefits or file P11D forms
• Your most recent P11D(b) submission date, if you've filed one before
• Details of any company cars, loans, or medical insurance provided to staff

What you'll get

A personalised compliance report covering: a score out of 100, an executive summary, a list of findings ranked by severity, and a prioritised action plan with timeframes.