What happens if you miss the P11D deadline?

What is a P11D? 

P11D is an annual form used to report benefits-in-kind given to employees by their employer over the tax year. Employers must submit a P11D online for each employee who received a benefit (or through payroll software if have more than 500 employees).  

A P11D(b) return must also be submitted by 6th July. The P11D(b) reports the total amount of Class 1A National Insurance Contributions (NIC) payable. Class 1A NIC is the kind of NIC paid on benefits-in-kind and is paid only by employers, and not employees. 

Reportable benefits are those taxable expenses and benefits which have not already been taxed through the PAYE system and are not subject to a tax exemption. 

Examples of benefits include accommodation, non-cash items, interest free loans, company cars and vouchers. You can view HMRC’s full list here. 

Copies of P11D forms must also be sent to the employees who have received benefits, by 6th July. 

Class 1A NIC must be paid electronically to HMRC by 22nd July (or 19th July if paid by cheque through the post).  

What about ERS returns? 

ERS returns tell HMRC about shares, share awards or other types of securities awarded to employees due to their employment. These shares and awards usually come from the employer, but they can be from someone else or from an employee benefit trust (EBT). 

ERS returns are also made online. There are different returns for different types of awards, such as Enterprise Management Incentive (EMI) options, or shares without any tax advantages. 

If you need to file an ERS return, you first need to register a scheme under the PAYE service within your HMRC Online Services account which can take up to seven days. 

Do I need to file these returns? 

Did your business provide benefits-in-kind to employees in the 2024-2025 tax year? 

If the answer is yes, it is likely that you need to file P11Ds and the P11D(b) return. Even if you taxed all of the benefits through payroll, you will still need to file a P11D(b). 

Did you issue any share awards to your employees in the 2024-2025 tax year? 

If the answer is yes, it is likely that you need to file an ERS return. 

What are the consequences if I miss the P11D or ERS returns deadlines? 

If the P11D or ERS return deadlines are missed, HMRC will charge penalties.  

P11D – HMRC can charge a penalty of £300 per P11D form for failure to submit on time (with First Tier Tribunal approval), followed by £60 per day if the forms remain outstanding. These penalties are rarely applied.  

HMRC can charge a penalty of up to £3,000 per P11D for incorrect reporting, using the penalty ranges below: 

Type of behaviour	Unprompted disclosure	Prompted disclosure
Reasonable care	No penalty	No penalty
Careless	0% to 30%	15% to 30%
Deliberate	20% to 70%	35% to 70%
Deliberate and concealed	30% to 100%	50% to 100%

P11D(b) – HMRC will charge £100 per 50 employees for each month (rounded up to the next whole month) that the P11D(b) is not submitted. 

If you are 30 days or more late paying Class 1A NIC to HMRC, you will face a penalty and interest charges. The penalty rises if payment is further delayed as follows: 

• 5% penalty if 30 days late 
• Additional 5% if 6 months late 
• Additional 5% if 12 months late 

If you do not pay the penalty within 30 days of receiving it, you will be charged interest.  

ERS returns – HMRC will issue an automatic penalty of £100 for each late ERS return, with an additional £300 if the return is three months late and a further £300 if it is six months late. HMRC may apply an additional £10 per day in penalties once the return is nine months late, although this is rarely done. 

Can I appeal those penalties? 

You can appeal any of these penalties within 30 days if you think you have a reasonable excuse. Examples of reasonable excuses include death in the family, serious illness, or a fire at your business location.  

What is payrolling of benefits? 

You may have heard about payrolling of benefits but are unsure how this fits with P11D reporting. Businesses can choose to report tax benefits-in-kind through the PAYE system instead of reporting them on employees’ P11Ds. Payrolling of benefits will be mandatory from 6th April 2027 (delayed from the previously announced date of 6th April 2026), except for employer loans and accommodation, which employers can choose to payroll or keep reporting on P11D. 

What is a PAYE settlement agreement? 

If your business provides minor, irregular or impracticable benefits to employees, you may wish to consider a PAYE settlement agreement (PSA). Under a PSA, you can settle the income tax and NIC due on the agreed benefits annually without needing to report them on P11Ds or payrolling them. There is more information from HMRC on PSAs here. 

How can TaxAssist Accountants help? 

We can help you to navigate your tax and NIC responsibilities on benefits-in-kind, your reporting obligations, and appealing penalties, and ensure you feel confident and compliant for the future. Contact us today on 01908 978 278 or use our online form to arrange a free, initial consultation. 

Last updated 19 Jun 2025 | First published 19 Jun 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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