The Tax Implications of Benefits In Kind

When managing a business, it’s crucial to understand that providing benefits, perks or covering expenses for employees comes with tax implications.

Completing a P11D

The P11D form is an annual document submitted to HMRC by employers. It lists expenses or benefits provided to employees during the year. If multiple benefits are provided, a P11D(b) form may also be required to calculate any Class 1A National Insurance owed. P11D forms must be submitted to HMRC by July 6th following the end of the tax year. Failure to meet this deadline may result in penalty fines.

Benefits In Kind

Benefits in kind (BIK) are non-cash benefits employees receive in addition to a salary and can include company cars used privately, medical insurance or gym memberships. Any item funded by the employer for employee benefit must be declared on the P11D form, along with the corresponding Class 1A National Insurance owed, calculated at the appropriate personal tax rate.

Get Expert Advice

At Moorgate, we offer simple, professional guidance and advice to help your business manage its finances effectively. If you need assistance with P11D forms, tax or any other aspect of business finance, please contact one of our team.


Moorgate Chartered Accountants

01883 730044