How to pay P11D liability: a guide for employers

If your company provides benefits in kind to directors or employees, you may need to submit P11D forms and pay the related Class 1A National Insurance. This can apply to benefits such as private medical insurance, company cars, director loans, gym memberships, living accommodation or other taxable benefits. P11Ds can feel confusing, especially if you only deal with them once a year. The good news is that the process is easier when you break it down into simple steps. In this guide, Agile Accountants explain what a P11D is, when it is due, how to pay the P11D liability and what information you should gather before filing.

What is a P11D?

A P11D is a form used to report taxable benefits and expenses provided to directors or employees during the tax year. The P11D tells HMRC what benefits have been provided, so the individual’s tax position can be updated where needed. The employer may also need to submit a P11D(b). This is the form that tells HMRC how much Class 1A National Insurance the company owes on those benefits. HMRC says employers must report expenses and benefits by 6 July after the end of the tax year. Employers must also report the total Class 1A National Insurance owed by the same date.

What do you actually need to pay?

Here is the simple version. The P11D reports the benefits. The P11D(b) reports the Class 1A National Insurance due. The payment is usually the Class 1A National Insurance the company owes on taxable benefits. So, when people talk about “paying the P11D liability”, they usually mean paying the employer’s Class 1A National Insurance. This is paid by the company. It is not deducted from the employee’s pay. HMRC confirms that Class 1A National Insurance contributions on benefits are paid by employers only, with no employee contribution payable.

P11D filing and payment deadlines

For benefits provided in the 2025/26 tax year, the key deadlines are:

• 6 July 2026: submit P11D forms to HMRC
• 6 July 2026: submit the P11D(b) to report Class 1A National Insurance
• 6 July 2026: give directors and employees a copy of their P11D information
• 19 July 2026: pay Class 1A National Insurance if paying by cheque
• 22 July 2026: pay Class 1A National Insurance electronically

HMRC states that Class 1A National Insurance must be paid by 22 July, or 19 July if paying by cheque.

How to pay P11D liability

Once the P11D(b) has been prepared and the Class 1A National Insurance figure is confirmed, the company needs to make payment to HMRC. Think of it as a five-step process.

Step 1: confirm the amount due

Before paying anything, check the P11D(b) calculation. Make sure you have confirmed:

• Which benefits have been included
• The value of each benefit
• Whether any benefits are exempt
• Whether any contributions have been deducted correctly
• The total Class 1A National Insurance due
• The correct tax year

This is especially important for benefits such as company cars, private medical insurance and director loans.

Step 2: find your Accounts Office reference

To pay Class 1A National Insurance, you need your Accounts Office reference. You can usually find this on:

• HMRC PAYE correspondence
• Your PAYE online account
• Previous PAYE payment records
• A payment booklet, if HMRC has issued one

For Class 1A National Insurance, you usually need to add four extra digits to the end of your Accounts Office reference. These digits tell HMRC which tax year the payment relates to. For the 2025/26 tax year, HMRC says you need to add 2613 to the end of your Accounts Office reference. Example: Accounts Office reference: 123PA00012345 Class 1A payment reference for 2025/26: 123PA000123452613 There should be no spaces. This part is important. If the reference is wrong, the payment may not be allocated properly.

Step 3: choose how you want to pay

HMRC gives employers different ways to pay Class 1A National Insurance. Options include online banking, telephone banking, Direct Debit, debit card, corporate credit card, CHAPS, Bacs and cheque. Electronic payment is usually the easiest option because the deadline is later than paying by cheque.

Step 4: make the payment online

To pay online, go to GOV.UK and search: Pay employers’ Class 1A National Insurance Then choose the payment method that works best for your company. Before you press pay, check:

• The payment amount
• The Accounts Office reference
• The extra 2613 suffix for 2025/26
• The bank account you are paying from
• The payment date

A quick check here can save a lot of admin later.

Step 5: save proof of payment

Once the payment has been made, save the confirmation. Keep a copy of:

• Payment confirmation
• Bank payment reference
• Amount paid
• Date paid
• P11D(b) calculation
• Submitted P11Ds
• Submitted P11D(b)

This gives you a clear audit trail if HMRC ever asks questions or if the payment is not allocated as expected.

Common examples of P11D benefits

P11Ds can apply to a wide range of benefits and expenses. Common examples include:

• Company cars
• Fuel benefit
• Private medical insurance
• Director loans
• Living accommodation
• Gym memberships
• Assets made available for personal use
• Certain travel or entertainment costs
• Non-business expenses paid by the company

The easiest way to avoid missing anything is to review benefits before the P11D deadline, rather than trying to piece everything together at the last minute.

Private medical insurance example

Private medical insurance, often called PMI, is one of the most common P11D benefits. If your company provides PMI for a director or employee, you will usually need to obtain the P11D benefit in kind statement or annual benefit summary from the insurance provider. This should show the taxable value to include on the P11D. Do not just rely on the monthly direct debit amount. The insurer’s P11D summary is usually the better starting point because it is prepared for benefits reporting.

What happens if you miss the P11D deadline?

Missing the deadline can lead to penalties, interest and unnecessary stress. Employers can receive a penalty of £100 per 50 employees for each month or part month that a P11D(b) is late. HMRC can also charge penalties and interest if payments are late. This is why it is worth starting early, especially if you need information from insurers, finance providers, company car providers or payroll records.

P11D checklist for employers

Before filing your P11Ds, check that you have:

• Reviewed all director and employee benefits
• Gathered private medical insurance benefit summaries
• Checked company car and fuel details
• Reviewed any overdrawn director loan accounts
• Checked whether any benefits were payrolled
• Confirmed whether any exemptions apply
• Prepared P11Ds for the relevant people
• Prepared the P11D(b)
• Calculated the Class 1A National Insurance liability
• Made payment using the correct HMRC reference
• Saved proof of payment

Common P11D mistakes to avoid

The most common mistakes include:

• Forgetting private medical insurance
• Missing director loan benefit calculations
• Using the wrong HMRC payment reference
• Forgetting to add the correct tax year suffix
• Paying against the wrong tax year
• Filing the P11D but forgetting the P11D(b)
• Assuming no P11D is needed because the company paid the cost
• Forgetting to give directors and employees a copy of their P11D
• Missing the Class 1A National Insurance payment deadline
• Not keeping evidence from benefit providers

Small mistakes can create big admin headaches, so it is worth slowing down and checking the details before submission and payment.

How Agile Accountants can help

At Agile Accountants, we support limited companies across the UK with practical, year-round accounting, payroll and tax advice. We can help you:

• Identify which benefits need reporting
• Prepare and submit P11Ds
• Prepare and submit the P11D(b)
• Calculate the Class 1A National Insurance liability
• Confirm the correct HMRC payment reference
• Review director loans and company benefits
• Keep clear records for HMRC

For owner-managed businesses and fast-growth start-ups, the aim is simple: stay compliant, avoid penalties and make sure benefits are reported correctly.

Final answer: how do you pay P11D liability?

To pay P11D liability, you first need to prepare the P11D(b) and confirm the Class 1A National Insurance due. You then pay HMRC using your Accounts Office reference, with the correct Class 1A tax year suffix added. For the 2025/26 tax year, the suffix is usually 2613. For the 2025/26 tax year, P11Ds and the P11D(b) are due by 6 July 2026. The Class 1A National Insurance payment is due by 22 July 2026 if paid electronically, or 19 July 2026 if paying by cheque. Need help with P11Ds, Class 1A National Insurance or the payment reference? Speak to Agile Accountants and we can guide you through it step by step.