It’s that time of year to get ready to pay the Class 1A 15% charge on benefits for the 2025/2026 tax year
Class 1A on benefits is not currently part of the payroll operation of PAYE. The realtime payroll related Class 1A capabilities currently present relate only to termination payments and sporting testimonials.
P11D(b)
Employers need to submit a P11D(b) form if:
- They have submitted any P11D forms declaring benefits
- They have paid any employees’ expenses or benefits through voluntary Payrolling
- HMRC has asked you to file a P11D(b) form, by sending you a notification to do so
The P11D(b) form tells HMRC how much employers’ Class 1A National Insurance contributions is needed to be paid on all the expenses and benefits they have provided to employees no matter whether reported on form P11D or via voluntary Payrolling.
Nothing to declare
Employers only need to tell HMRC that they do not need to make a return if HMRC sent a notice to file, or a reminder to file a P11D(b), and they have nothing to declare. They can tell HMRC by completing a no return of Class 1A National Insurance contributions form.
I’ve made a mistake!
If there is a mistake, then complete the online correction forms which can be found in expenses and benefits for employers guidance.
Paying Class 1A National Insurance contributions (NICs)
Electronic payments for Class 1A NICs declared on your P11D(b) return for the tax year ended 5th April 2026 must clear into HMRC’s account by 22nd July 2026.
Use the right payment reference when paying Class 1A NICs
Make sure a payment is correctly allocated by providing the correct payment reference.
Use the employers 13-character Accounts Office reference followed by 2613. The reference should have no gaps between the characters.
Adding 2613 is important because 26 tells us the payment is for the tax year ended 5th April 2026, and 13 lets us know the payment is for Class 1A NICs.
2613
For more information about how to pay your Class 1A National Insurance Contributions, including using the green ‘Pay Now’ button to select one of the secure payment methods, visit pay employers’ Class 1A National Insurance.
When will Class 1A on benefits be real-time?
With the introduction of Mandatory Payrolling Benefits In Kind (MPBiKs) which starts from 6th April 2027 firstly with Cars and Vans along with any fuel provision, and also medical benefits, a new payroll related Class 1A real-time calculation is introduced.
As this relates to benefits, a new set of reporting fields will be introduced on the Real Time Information (RTI) Full Payment Submission (FPS).
No longer will the calculation be 15% of the total of all employer benefits take place as a single calculation declared on firm P11Db but a new employee level calculation each period based on the total benefit at employee level.
So potentially the last separate payment of Class 1A in arrears will be July 2027 excepting those benefits which remain voluntary and may still be reported on form P11D.
PAYadvice.UK 20/6/2026