Employers must file their 2024/25 P11D returns by 6 July 2025, reporting any expenses and benefits provided to directors and employees during the tax year.
Filing Must Be Online
Paper forms are no longer accepted. P11Ds must be submitted via:
- HMRC’s PAYE Online for employers, or
- Commercial payroll software.
Late submissions or incorrect reporting can result in penalties, so it’s essential to get everything in order now.
What Doesn’t Need Reporting
- Reimbursed expenses do not need to be reported if they were incurred wholly, exclusively, and necessarily for work duties. There’s no longer a need for a formal dispensation, but HMRC expects employers to have proper internal controls in place.
- Trivial benefits (under £50) such as small non-cash gifts for birthdays or Christmas don’t need to be reported – as long as they are not provided as a reward for services. Records should still be kept as evidence.
Official Rate of Interest (ORI)
If you provide employees with beneficial loans over £10,000 or certain living accommodation, you’ll need to apply the official rate of interest:
- For 2024/25: 2.25%
- From 6 April 2025: 3.75%
- From 2025/26: HMRC will review the rate quarterly, with any changes applying from 6 July, 6 October, or 6 January.
Double-Cab Pickup Trucks – New Rules
From 6 April 2025, most double-cab pickup trucks (DCPUs) will be treated as cars, not vans, for benefit-in-kind purposes. This is due to a Court of Appeal ruling and revised HMRC guidance.
- If the vehicle is not primarily suited to carrying goods, it will no longer qualify as a van.
- Most DCPUs, suited to both passengers and goods, will be classed as cars for tax purposes.
Transitional relief applies to DCPUs purchased, leased or ordered before 6 April 2025. The previous van classification can be used until the earlier of:
- Disposal,
- Lease expiry, or
- 5 April 2029.
At Beavis Morgan, we support employers in navigating their P11D responsibilities and maximising tax efficiency. For tailored advice and assistance with reporting, speak to your usual Beavis Morgan partner or contact us at info@beavismorgan.com.
