--- title: The P11D and benefits in kind description: The P11D and benefits in kind --- [Skip to content](https://help.1stformations.co.uk/accounting-service/the-p11d-and-benefits-in-kind#main-content) [![image 4](https://help.1stformations.co.uk/hubfs/image%204.svg)](https://www.1stformations.co.uk/) - [Help Centre](https://help.1stformations.co.uk/) Open main navigation Close main navigation - [Help Centre](https://help.1stformations.co.uk/) - [Login](https://www.1stformations.co.uk/login/) [Login](https://www.1stformations.co.uk/login/) How can we help you? - There are no suggestions because the search field is empty. 1. [Accounting Service](https://help.1stformations.co.uk/accounting-service?hsLang=en-gb) 2. [Corporation Tax and Year-End](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb) 3. [PAYE and Payroll Basics](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#paye-and-payroll-basics) # The P11D and benefits in kind ## When a benefit in kind is, how it’s reported, and other things to note If your company provides you with a non-cash benefit such as private medical insurance or a company car, HMRC requires this to be reported on a P11D form each year. ### What a benefit in kind is A benefit in kind (BIK) is anything of value the company provides to a director or employee that is not cash. Common examples include private medical insurance, a company car, a gym membership, or an interest-free loan above £10,000. The value of the benefit is treated as additional taxable income for the recipient. ### How it is reported Your company needs to file the P11D by 6 July each year. The company also pays Class 1A National Insurance contributions at 15% on the total value of all benefits provided, due by 22 July. You pay Income Tax on the benefit value through your Self Assessment return or via an adjustment to your tax code. ### What is exempt - One mobile phone per employee (in the company's name) - Trivial benefits under £50 each, up to £300 per year for directors - Employer pension contributions - Workplace parking at your normal place of business ### Coming change: payrolling from April 2027 The P11D system is being phased out. From 6 April 2027, certain benefits, including company cars and private medical insurance, must be reported through payroll in real time rather than on a P11D, with most other benefits following from April 2028. This means the tax on these benefits will be collected through your monthly payroll as they arise, rather than after the year end. Interest-free loans and living accommodation will stay on the P11D for the time being. 💡 **Good to know:** Tell us before the company provides any new benefit to you or an employee. We calculate the BIK value and the tax cost, so there are no surprises at year-end. The most common BIK for small company directors is private medical insurance. ### Not found what you're looking for? Please get in touch and we'll be happy to help: **Email:** You can submit a request using our [contact form](https://forms.1stformations.co.uk/contact/) **Phone:** 020 3897 2233 **Live Chat:** Select the live chat icon on the bottom right - [Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#main-content) - [Understanding Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#understanding-your-plan) - [Compliance Included in Your Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#compliance-included-in-your-plan) - [Your Xero Plan](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#your-xero-plan) - [Add-ons Explained](https://help.1stformations.co.uk/accounting-service/your-plan?hsLang=en-gb#add-ons-explained) - [Working with Us](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#main-content) - [How to Contact Us](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#how-to-contact-us) - [Your Accountant and Support Team](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#your-accountant-and-support-team) - [Keeping Your Details Up to Date](https://help.1stformations.co.uk/accounting-service/working-with-us?hsLang=en-gb#keeping-your-details-up-to-date) - [New Company Essentials](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#main-content) - [Getting Started](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#getting-started) - [Before and Beyond Trading](https://help.1stformations.co.uk/accounting-service/new-company-essentials?hsLang=en-gb#before-and-beyond-trading) - [What You Can and Can't Claim](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#main-content) - [Benefits, Perks, and Grey Areas](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#benefits-perks-and-grey-areas) - [Mileage, Travel and Subsistence](https://help.1stformations.co.uk/accounting-service/what-you-can-and-cant-claim?hsLang=en-gb#mileage-travel-and-subsistence) - [Xero Training and Analytics](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#main-content) - [Weekly Xero Training Sessions](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#weekly-xero-training-sessions) - [Xero Health Checks](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#xero-health-checks) - [Syft Analytics](https://help.1stformations.co.uk/accounting-service/xero-training-and-analytics?hsLang=en-gb#syft-analytics) - [Tax Reviews and Webinars](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#main-content) - [Annual Tax Efficiency Review](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#annual-tax-efficiency-review) - [Quarterly Business Performance Review](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#quarterly-business-performance-review) - [Topical Webinars](https://help.1stformations.co.uk/accounting-service/tax-reviews-and-webinars?hsLang=en-gb#topical-webinars) - [Bookkeeping Basics](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#main-content) - [Day-to-Day Bookkeeping Workflow](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#day-to-day-bookkeeping-workflow) - [Bank Reconciliation](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#bank-reconciliation) - [Recording Sales and Purchases](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#recording-sales-and-purchases) - [Managing Receipts and Best Practice](https://help.1stformations.co.uk/accounting-service/bookkeeping-basics?hsLang=en-gb#managing-receipts-and-best-practice) - [VAT Registration and Submissions](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#main-content) - [Do I Need to Register for VAT](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#do-i-need-to-register-for-vat) - [Submitting VAT Returns](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#submitting-vat-returns) - [VAT on Sales and Purchases](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#vat-on-sales-and-purchases) - [VAT Payments and Schemes](https://help.1stformations.co.uk/accounting-service/vat-registration-and-submissions?hsLang=en-gb#vat-payments-and-schemes) - [Paying Yourself and Employees](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#main-content) - [Paying Directors: Salary vs Dividends](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#paying-directors-salary-vs-dividends) - [Your Payslip and National Insurance](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#your-payslip-and-national-insurance) - [Dividends: Legal Process](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#dividends-legal-process) - [Payroll Essentials for New Directors](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#payroll-essentials-for-new-directors) - [Hiring and Employment Status](https://help.1stformations.co.uk/accounting-service/paying-yourself-and-employees?hsLang=en-gb#hiring-and-employment-status) - [Corporation Tax and Year-End](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#main-content) - [Corporation Tax Fundamentals](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#corporation-tax-fundamentals) - [Allowable Expenses and Year-End Planning](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#allowable-expenses-and-year-end-planning) - [PAYE and Payroll Basics](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#paye-and-payroll-basics) - [Director's Loan and HMRC Communications](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#directors-loan-and-hmrc-communications) - [Losses, Rates and Reliefs](https://help.1stformations.co.uk/accounting-service/corporation-tax-and-year-end?hsLang=en-gb#losses-rates-and-reliefs) - [Invoices & Payments](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#main-content) - [Creating Invoices and Getting Paid](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#creating-invoices-and-getting-paid) - [Invoice Numbering and Record Keeping](https://help.1stformations.co.uk/accounting-service/invoices-payments?hsLang=en-gb#invoice-numbering-and-record-keeping) - [Personal Tax for Directors](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#main-content) - [Drawing Money from Your Company](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#drawing-money-from-your-company) - [Self Assessment Practical Guide](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#self-assessment-practical-guide) - [National Insurance and Benefits](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#national-insurance-and-benefits) - [Household Finances](https://help.1stformations.co.uk/accounting-service/personal-tax-for-directors?hsLang=en-gb#household-finances) - [Using Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#main-content) - [Getting Started with Xero](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#getting-started-with-xero) - [Bank Feeds and Making Tax Digital](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#bank-feeds-and-making-tax-digital) - [Xero for VAT and Payroll](https://help.1stformations.co.uk/accounting-service/using-xero?hsLang=en-gb#xero-for-vat-and-payroll) - [Understanding your Numbers](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#main-content) - [Key Accounting Terms Explained](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#key-accounting-terms-explained) - [Reading your Financial Reports](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#reading-your-financial-reports) - [Using Your Numbers to Make Decisions](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#using-your-numbers-to-make-decisions) - [Your Compliance Calendar](https://help.1stformations.co.uk/accounting-service/understanding-your-numbers?hsLang=en-gb#your-compliance-calendar) - Terms & Conditions - Privacy Policy - Cookie Policy [![1stformations logo white](https://help.1stformations.co.uk/hs-fs/hubfs/1stformations%20logo%20white.png?width=142&height=30&name=1stformations%20logo%20white.png "1stformations logo white")](https://www.1stformations.co.uk) [mailto:email@email.com](mailto:email@email.com)  Copyright 2026 © 1st Formations We are proud to be a Certified B Corporation™