The P9D was designed to report benefits and expenses provided to lower-paid employees i.e. those earning at less than the rate of £8500. The P9D has been abolished from the 2016/17 reporting year and all qualifying expenses need to be reported on a P11D.

Only the following benefits were reportable on a P9D:

  • Relocation Expenses – Exceeding £8,000
  • Living Accommodation – Except where it is exempt
  • Payment of Pecuniary Liability -If the company pays an employee’s personal bill
  • Vouchers – Any kind of voucher which can be exchanged for goods, services or cash
  • Cash Convertible – The second-hand value of the asset

This means that certain major benefits are not taxable on lower paid employees. These include: –

  • Company Cars & Car Fuel Benefit
  • Company Vans
  • Beneficial Loans
  • Private Medical Insurance

P9Ds do not attract any Class 1A National Insurance and have to be submitted to HMRC by the deadline date of 6th July following the tax year end.