P11Ds - don't forget beneficial loans
Ahead of the P11D filing deadline on 6 July, HMRC has issued a reminder to employers about beneficial loans. What’s the full story?

P11D filing may soon be consigned to the history books, though mandatory payrolling has been pushed back to 2027. However, until then it’s important that employers continue to file on time. The deadline for reporting benefits and expenses for 2024/25 is just a few weeks away on 6 July, and HMRC has written to some employers about reporting beneficial loans. Those targeted are where the financial statements show outstanding amounts from employees and/or directors above the threshold, reminding them of their obligations to report the amounts on the P11D forms.
As a reminder, a loan arrangement needs to be reported if it is a loan:
- owed for all or part of the year in which the directors and employees are employed;
- with no interest paid, or the interest paid is less than the official rate of interest, this is 2.25% from 6 April 2023;
- where no exceptions in ss.176-179 Income Tax (Earnings and Pensions) Act 2003 apply.
This particular letter doesn’t require a specific response. The message is simply a prompt to check the arrangements and report accordingly if necessary. There are a number of useful references to further information in the letter, which you can view here.
Related Topics
-
VAT-saving opportunity with changes to the CGS?
The government has announced that it will increase the capital goods scheme (CGS) threshold for capital expenditure on land and buildings from its current level of £250,000. What will the new threshold be, and how can you take advantage?
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?