If you’ve provided any expenses or benefits in kind to employees or directors during the 2024/25 tax year, you’ll need to submit P11D forms by 6 July 2025. These forms must now be submitted online only, either through PAYE Online for employers or using approved commercial software. Paper forms are no longer accepted.

What doesn’t need to be reported

You don’t need to report expenses that are reimbursed to employees, as long as the cost was incurred wholly, exclusively and necessarily for their job. There’s no longer a need to apply for dispensation, but HMRC expects you to have good internal processes in place to make sure these expenses meet the rules.

You also don’t need to report small gifts (under £50 in value) given to employees, as long as they meet the ‘trivial benefits’ criteria. This typically includes non-cash gifts like a bottle of wine or a Christmas hamper. However, these gifts can’t be a reward for work done, and employers must keep a record of what was given and why.

Changes to official rate of interest

If you’re reporting beneficial loans or certain types of employment-related living accommodation on P11D forms for the 2024/25 tax year, the official rate of interest (ORI) you need to use is 2.25%. This applies if the total value of the loan is over £10,000. From the start of the 2025/26 tax year, the ORI has increased to 3.75%. Going forward, the rate will now be reviewed every quarter, and if any changes are made, they’ll come into effect on 6th July, 6th October or 6th January.

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