Its P11D deadline season

It’s P11D deadline season – here’s what you need to know!

The countdown is on! Employers have until 6 July 2025 to submit P11D forms for the 2024-25 tax year, reporting expenses and benefits in kind provided to employees and directors.

Important update: Paper submissions are no longer accepted. All returns must now be submitted online-either through HMRC’s PAYE Online service or approved commercial software.

What Doesn’t Need Reporting?

• Reimbursed expenses that are incurred wholly, exclusively, and necessarily in the performance of an employee’s duties—these are no longer reportable.
• Trivial benefits-those little extras under £50 (think birthday cakes, holiday wine, or a festive gift box)-also fall outside P11D reporting as long as they:
  • Aren’t cash or cash vouchers,
  • Aren’t given in recognition of work,
  • And aren’t part of a salary sacrifice or contractual entitlement.

Employers should still keep records of what was given and why it qualifies.

Official Rate of Interest (ORI): What You Need to Know

If you’re reporting certain employment-related accommodation or beneficial loans on the P11D, the ORI for 2024-25 is 2.25%, but this only applies if the loan exceeds £10K.

Heads up: The ORI jumped to 3.75% from 6 April 2025, and going forward, it will be reviewed quarterly. If there are any in-year changes to the rate, these will take effect on 6 July, 6 October and 6 January.

Double Cab Pickups: Major Rule Change

Following a recent Court of Appeal ruling, from 6 April 2025, the classification of double-cab pickups (DCPUs) will need to be determined by assessing the vehicle as a whole at the point that it is made available, to determine whether the vehicle construction has a primary suitability. If the vehicle is primarily suited to carrying goods or burden, for direct tax purposes it can be treated as a van. Most DCPUs are suited to both passenger transport and carrying goods, so they do not have a primary suitability. It therefore follows that most DCPUs are expected to be classified as cars when calculating the benefit in kind charge.

Transitional arrangements apply for employers that purchased, leased, or ordered a double cab pickup before 6 April 2025, whereby they will be able to rely upon the previous treatment until the earlier of:

1) When the vehicle is disposed of;

2) When the lease expires, or;

3) 5 April 2029.

Need help navigating these updates? We’re here to guide you through every step of the P11D process. Let’s make this tax season smooth and stress-free! If you have any questions concerning the P11D deadline, please contact Martin Back on 023 8046 1232 or email Martin Back.