As we move through the 2024/25 tax year, it’s crucial for employers to stay on top of their responsibilities when it comes to reporting taxable expenses and benefits provided to employees. Whether you’ve chosen to payroll benefits or not, HMRC has clear rules and deadlines—and staying compliant helps avoid costly penalties while keeping your team properly informed.
Here’s everything you need to know to meet your reporting obligations confidently and correctly.
Understanding Your Reporting Options
There are two main ways to handle the taxation of employee benefits:
- Payrolling Benefits – where the tax is collected in real time via your payroll system.
- Traditional P11D Reporting – where you report benefits after the tax year ends via P11D forms.
Your reporting process will depend on which method you used.
✅ If You’ve Payrolled Benefits
If you’ve opted to payroll employee benefits, most of your reporting has already occurred throughout the year. However, you’re not off the hook just yet—there are still two key tasks to complete after the tax year ends:
1. Notify Employees by 1 June 2025
You must give each employee a breakdown of their payrolled benefits for the 2024/25 tax year. This can be delivered:
- By email
- Through a formal letter
- Or shown directly on the employee’s payslip
2. Submit P11D(b) by 6 July 2025
Even though the benefits were payrolled, you must still submit a P11D(b) to declare your Class 1A National Insurance Contributions (NICs). This return:
- Must be submitted online via HMRC’s PAYE Online service or using commercial software
- Should include all payrolled benefits
📄 If You Didn’t Payroll Benefits
If some or all of your employee benefits were not payrolled, your reporting process involves additional steps:
1. Submit Form P11D for Each Employee
Each taxable benefit provided must be reported on a separate P11D form for the relevant employee. Remember:
- P11Ds must be submitted online by 6 July 2025
- You can use HMRC’s PAYE Online (if you have fewer than 500 employees) or an approved software provider
- Paper forms are no longer accepted
2. File the P11D(b)
Alongside your P11D submissions, you’ll also need to file a P11D(b) online. This form:
- Confirms submission of all relevant P11Ds
- Declares your Class 1A NIC liability
- Must include all benefits, whether payrolled or not
3. Inform Your Employees by 6 July 2025
You are required to give each employee a breakdown of the benefits reported on their behalf. You can:
- Send them a copy of their P11D
- Provide the details in a letter or email
⚠️ Avoiding Penalties
Late or incorrect submissions can lead to significant penalties. It’s vital to:
- Meet the 1 June (for payrolled benefit notifications) and 6 July (for filings and P11D disclosures) deadlines
- Double-check figures and records to ensure accuracy
📘 Regulatory Framework
This guidance is based on key UK legislation, including:
- Income Tax (PAYE) Regulations 2003 – Regulations 61M, 85–87
- Social Security (Contributions) Regulations 2001 – Regulation 80
📝 Final Tips for Employers
- Start preparations early—don’t wait until June or July
- Make sure you’re using compliant payroll software for submissions
- Maintain clear communication with employees throughout the process
By following the correct procedures and staying ahead of the deadlines, you’ll ensure a smooth end-of-year process—and avoid any unnecessary stress or penalties.
Need support or advice on handling benefits and expenses? Feel free to reach out for tailored guidance or resources to simplify your compliance journey.
