If your business provided any taxable expenses or benefits to employees in the 2024/25 tax year, it’s now time to meet your reporting obligations.
Whether you’ve been payrolling benefits or using traditional P11Ds, HMRC still expects accurate, timely submissions—and your employees need the details too.
Here’s a breakdown of what needs to be done, by when, and how to avoid falling foul of penalties.
What Are Your Reporting Responsibilities?
It depends on how you’ve handled the benefits throughout the year.
There are two main routes:
- Payrolled benefits – taxed through payroll in real time
- Non-payrolled benefits – reported via P11D and not included in a PAYE Settlement Agreement
Let’s look at both.
If You Payrolled Benefits
Payrolling means you’ve already reported most of the taxable benefits to HMRC through your payroll software each pay period.
But don’t relax just yet—there are still important steps to take after the tax year ends.
Here’s what you must do:
- By 1 June 2025: Give each employee a breakdown of their 2024/25 payrolled benefits. This can be done by:
- Letter
- Payslip
- By 6 July 2025: File your P11D(b) return online. This is essential, even if all benefits were payrolled.
It’s used to calculate and report your Class 1A National Insurance bill for the year.
You can file using:
- HMRC’s PAYE Online for Employers
- Commercial payroll software
If You Didn’t Payroll the Benefits
For any benefits that weren’t payrolled or included in a PAYE Settlement Agreement, you’ll need to file a P11D for each affected employee.
Here’s what you need to do:
- By 6 July 2025:
- File P11Ds online for each employee who received non-payrolled benefits.
- File a P11D(b) online to report your total Class 1A NIC liability.
Paper forms are no longer accepted.
And remember—HMRC’s own PAYE Online service can only be used if you have fewer than 500 employees.
You’ll also need to give employees a copy of their P11D or share the same information via letter or email by 6 July 2025.
Why It Matters
Missing deadlines or submitting incorrect returns can lead to costly penalties.
- Late submissions may result in automatic fines
- Errors could lead to further HMRC scrutiny
So it pays to be organised and double-check that you’ve reported everything correctly—including both payrolled and non-payrolled benefits when calculating your Class 1A NIC.
Need a Hand with Your P11D Reporting?
The P11D and Class 1A NIC process can feel like a headache—especially when you’re juggling payroll, tax, and day-to-day business operations.
At Jon Davies Accountants, we can help you make sure everything’s filed correctly and on time, so you avoid penalties and keep your team informed.
Get in touch with Jon or the team today for expert support with your 2024/25 benefits reporting.
Let us take care of it—contact us now.
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk