The employer for declaring the HMRC mostly fills out the P11D form. This will include the benefits, which are given to the employees or to the directors. When the financial reporting year is completed at that time, the employers are needed to fill out the P11D form for reporting the expenses and the benefits, which are provided to the employees, and the directors in that same tax year.
Employees are not required physically to fill out the P11D form when they are receiving the taxable benefits. However, when you are a freelancer and the contractor who are arranging the P11D benefit via the company then technically you are playing both the roles of employer and employee. In your capacity as an employer, you are therefore needed to fill out the P11D as the part of the self-assessment tax return.
This is also depending on the benefit of the employee. There are several plans and types of P11D benefit in kind and life insurance. Some of the major ones are listed below –
- Group income protection – Although it is not considered as a taxable benefit it is considered as an allowable expense by the employer. There need not be any sort of additional tax which is to be paid on this group income protection premiums. If you claim the benefit then the amount will be taxed.
- Group life insurance tax – this is also popularly known as death in service insurance policy and is a permitted insurance for businesses at the expense of the employer. The tax is completely waived off for the employees in this case but this is not considered as P11D. It is also a part of the trust in most cases so that the benefits can be claimed by the family members of the employee without the need to pay any taxes.
- Group critical illness insurance – this is an insurance which falls under the category of benefit in kind and is also considered as a P11D for employees. Although you can consider it as an allowable business expense the employee has to pay tax on the premiums of this insurance that the employer is paying on their behalf.
Group health insurance taxation – this is a sort of medical insurance and is a taxable insurance policy. This is paid by the employer and the tax on the premiums is paid by the employee.