What has to be reported
Common reportable benefits in kind include:
- Company cars and private fuel
- Private medical and dental insurance
- Beneficial loans — interest-free or cheap loans over £10,000 (including overdrawn director’s loans)
- Living accommodation provided by the company
- Non-business travel, gym memberships and similar perks
Genuine business expenses reimbursed to employees usually aren’t benefits, and trivial benefits under £50 are exempt.
The deadlines and Class 1A NI
- 6 July — file P11Ds and the P11D(b) for the previous tax year
- 22 July — pay employer’s Class 1A National Insurance (19 July by post)
- Class 1A rate — 15% for 2025/26 on the total benefit value
The employee pays income tax on the benefit (usually via their tax code); there’s no employee National Insurance on benefits in kind.
The director's loan overlap
One trap worth flagging: an overdrawn director’s loan over £10,000 is itself a benefit in kind reportable on a P11D, with Class 1A due — on top of the separate S455 Corporation Tax charge. Directors who dip into the company account informally often trigger both without realising.
Payrolling benefits — the direction of travel
HMRC is moving towards mandatory payrolling of most benefits, taxing them in real time through payroll rather than on an annual P11D. The start date has moved, so the right method depends on the year. We keep clients on the correct approach and file the P11Ds where still needed. Call 0114 327 1480.