It’s that time of year again! P11D forms for reporting expenses and benefits in kind for the 2024/25 tax year must be submitted by 6 July 2025. Paper forms are no longer accepted, so all submissions must be made online via PAYE Online for employers or commercial software.
Additionally, reimbursed expenses that are incurred wholly, exclusively, and necessarily in the performance of an employee’s duties no longer need to be reported, though HMRC expects employers to have internal controls in place to ensure compliance. Trivial benefits—non-cash gifts up to £50—are also exempt from reporting, covering items like holiday gifts, food, and alcohol, provided they are not given as a reward for past or future service. Employers should still maintain records of the benefits provided to ensure transparency.
For employers reporting beneficial loans or certain employment-related living accommodations on the P11D for 2024/25, the official rate of interest (ORI) to be used is 2.25%. This charge applies if the loan amount exceeds £10,000. However, the ORI increased to 3.75% on 6 April 2025, and from the 2025/26 tax year onwards, the rate will be reviewed quarterly. Any changes following a review will take effect on 6 July, 6 October, and 6 January, ensuring regular updates based on market conditions. Employers should stay informed about these changes to remain compliant with reporting requirements.
If you need assistance or have any questions, don’t hesitate to contact our team. We’re here to help you navigate the complexities of tax compliance, allowing you to focus on running your business.
