If you employ staff, the next few weeks bring two important compliance dates. P60s should already be in employees’ hands, and P11D and P11D(b) forms for the 2025/26 tax year are due to HMRC by 6 July 2026. Missing either can mean penalties that stack up fast — and for many employers, this is also the last full year of filing P11Ds in the traditional way before the rules change in 2027. As a chartered accountant Essex businesses turn to us for payroll compliance, we’ve pulled together what you need to know.
P60s: A Quick Recap
Every employee on your payroll at the end of the tax year (5 April 2026) should have received a P60 by 31 May 2026. This summarises their total pay, tax, and National Insurance for the year and is something employees often need for mortgage applications, tax credit claims, or their own Self Assessment. If any of your staff are still chasing theirs, it’s worth resolving this alongside your P11D preparation, since HMRC expects accurate, consistent records across both.
What a P11D Actually Covers
A P11D reports taxable benefits in kind given to employees or directors that weren’t already processed through payroll — company cars, private medical insurance, cheap loans, and similar perks. If you provided any of these during 2025/26, you’ll likely need to file. The P11D(b) is the accompanying form declaring how much employer Class 1A National Insurance is owed on those benefits, currently calculated at 15% of their taxable value.
Key Dates to Get Right
Mark these in your diary now. 6 July 2026 is the deadline to submit both P11D and P11D(b) forms to HMRC, and to give each affected employee a copy of their own information. Class 1A National Insurance must then reach HMRC by 19 July if paying by post, or 22 July if paying electronically.
What Happens If You’re Late
HMRC’s penalties are automatic and unforgiving. Late P11D(b) filing costs £100 per 50 employees for every month (or part month) it remains outstanding, with no grace period. Inaccurate returns can attract penalties of up to £3,000 per form, separate from any late filing charge. Late Class 1A payments add interest plus escalating percentage penalties.
Why 2026 Is a Turning Point
From April 2027, HMRC begins phasing in mandatory payrolling of benefits in kind, starting with company cars and medical benefits. This means the tax on these benefits will increasingly be collected through payroll each pay period rather than reported once a year. Beneficial loans and living accommodation remain outside this for now. If you’re not already considering voluntary payrolling, this summer is the moment to start planning the transition — and to make sure your records are clean enough to support it.
Getting Ahead of It
Benefit reporting catches out even well-organised businesses, particularly where car benefits, medical cover, or loans have changed mid-year. As a financial advisor Essex employers rely on for payroll and benefits guidance, our team has the experience to keep you compliant and ahead of the upcoming changes. To find out more about who we are, visit our about us page. If you’d like a second pair of eyes on your P11D before 6 July, contact us — we’re happy to help you avoid an unnecessary penalty.