What is the impact on the employer when providing a P11d to an employee?

Any benefits or expenses reported on a P11d by an employer will result in an additional cost for the company.

All employers are required by law to complete a P11d(b). The payroll department must add up the total benefits for everyone who has a benefit in kind  and include it on the form. This must then be submitted to HMRC by 6^th July, following the end of the relevant tax year. The employer has to pay 13.8% of the total benefits value to HMRC in respect of 2021/22 benefits. This rises to 15.05% in respect of 2022/23 benefits as the result of the social levy announcement  in the former budget. This additional Employer cost  is known as Class 1A National Insurance.