Employer Year-End Reporting 2025/26

P11D Reporting Requirements for 2025/26

A P11D form is used to report taxable benefits and expenses provided to employees during the tax year. Common examples include company cars and fuel, private medical insurance, living accommodation, and certain reimbursed expenses.

P11D Deadlines for 2025/26

• Provide employees with a copy of their P11D by 6 July 2026
• Submit the P11D and P11D(b) to HMRC by 6 July 2026

The P11D(b) summarises all benefits reported on P11Ds, including any payroll benefits. It is used to calculate the employer's Class 1A National Insurance contributions.

Class 1A National Insurance — Rates and Deadlines

For the 2025/26 tax year, Class 1A National Insurance is charged at 15% on taxable benefits. Payment is due by 22 July 2026 if paying electronically, or 19 July 2026 if paying by post.

Mandatory Payrolling of Benefits from April 2027

From April 2027, most employee benefits will be subject to mandatory payrolling. This means income tax on benefits collected in real time through PAYE, removing the need for most year-end P11Ds. As a result, 2026/27 will be the final full tax year in which P11Ds are widely required.

Two benefits are excluded from mandatory payrolling from April 2027: beneficial loans and living accommodation. These can still be reported via P11D or voluntarily payrolled.

PAYE Settlement Agreements (PSA)

A PAYE Settlement Agreement allows an employer to settle the income tax and National Insurance due on certain benefits and expenses on behalf of employees. Benefits included in a PSA are not reported on P11D.

Common items included in a PSA: staff entertaining (e.g. Christmas parties), long service awards, non-contractual gifts (e.g. wedding or birthday gifts).

The deadline to apply for a PSA for the 2025/26 tax year is 5 July 2026. Tax and Class 1B National Insurance must be paid by 22 October 2026 (or 19 October if paying by post). For 2025/26, Class 1B NI is charged at 15%.

Key Employer Year-End Deadlines 2026

• 22 April 2026 — Final PAYE and National Insurance Payment
• 31 May 2026 — Short-term business visitors report
• 5 July 2026 — PSA application deadline
• 6 July 2026 — P11D and P11D(b) submission deadline
• 22 July 2026 — Class 1A National Insurance payment
• 22 October 2026 — PSA tax and Class 1B National Insurance payment

Year-end employment tax compliance places significant administrative and financial responsibility on employers. Missing key deadlines can result in penalties, interest, and increased scrutiny from HMRC.