Payroll (PAYE), Profits and P11D

Payroll (PAYE)

If you trade through your own Limited company you will probably be an employee of your own company.  Since 6 April 2013 payroll reporting to HMRC should be completed each month as part of the Real-Time Information reporting system.

From 2013-14 onwards employers will no longer have to submit end of year returns P35, although each employee should still receive a P60.

You can complete your own online payroll filing by using the HMRC Basic PAYE tools, alternatively your accountant can file your monthly returns online.


Your profits  before tax are the basic starting point for the calculation of your taxable income for a self-employed business or a company.

See letter A, accounts for more information on the adjustments your accountant may make between your cash profits and your accounting profits.


A P11D is an annual report of the benefits-in-kind you received from your employer.  A P11D may be required if you do not have a dispensation and you have only paid for company expenses and then been reimbursed.  The most common benefits-in-kind are company cars, private medical insurance and loans over £5,000 for 2013-14, increasing to £10,000 thereafter.

The benefits included in your P11D will need to be included in your self-assessment tax return and they will be checked to ensure they agree to the return submitted by your employer.

If you trade through your own limited company you may have to file a P11D if you have provided benefits to yourself (as an employee) or other employees.  the filing deadline is 6 July after the end of the tax year.