P11DS – Don’t forget beneficial loans

Published: 28th May 2025

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 on HMRC’s one-to-many campaign and employment-related loans included in the letter.