Class 1A National Insurance was due on 22 July: a final payroll check for employers

The electronic deadline for paying Class 1A National Insurance on benefits provided during 2025/26 was 22 July 2026. Cheque payments had to reach HMRC by 19 July. If an amount remains outstanding, interest is already running, so act promptly.

What you should have paid

Class 1A is an employer-only charge on the cash equivalent of taxable benefits provided to employees and directors. It commonly applies to company cars, employer-provided medical insurance and beneficial loans. It is not deducted from employees’ pay.

For 2025/26, the rate is 15%. Add together the benefits liable to Class 1A and multiply the total by 15%. Taxable benefits of £40,000 therefore create a £6,000 liability.

The amount was declared on form P11D(b). P11Ds, the P11D(b) and employee copies were due by 6 July 2026. HMRC’s expenses and benefits for employers guidance explains what must be reported.

Key dates and consequences

Further 5% penalties can apply to amounts still unpaid six and 12 months after the due date. HMRC will issue a penalty notice stating what is owed. A clear schedule of Companies House and HMRC deadlines helps prevent filing and payment dates being confused.

Checks worth completing now

• Confirm that 15%, rather than 13.8%, was used.
• Check benefits provided to directors, including relevant benefits for family or household members.
• Review interest-free or low-interest employment-related loans. The £10,000 exemption depends on the combined outstanding balance and the circumstances. See how directors’ loans work.
• Ensure correctly payrolled benefits were not duplicated on P11Ds but were included in the P11D(b) calculation.
• If HMRC requested a P11D(b) but there was nothing to declare, submit the online no-return declaration.
• For a July 2026 Class 1A payment, add 2613 to the 13-character Accounts Office reference.

A quick example

A company provides two cars and family medical cover with a taxable value of £38,000. At 15%, the Class 1A liability is £5,700. The calculation is simple, but the figures must reflect changes such as a replacement car or revised medical premium.

Accurate bookkeeping and well-managed payroll services help keep those records current.

What changes from April 2027

From 6 April 2027, mandatory real-time payrolling will initially apply to company cars, car fuel, vans, van fuel and employer-provided medical benefits. Most other benefits are expected to follow from April 2028. The timetable for employer-provided loans and accommodation will be confirmed separately.

Employers should prepare their software, records and employee communications. There will also be a one-off cash-flow overlap in 2027 because the 2026/27 Class 1A bill remains payable after the year end while Class 1A for benefits within the new regime begins to be handled in real time. Our limited company accountants can help with the transition.

Frequently asked questions

What is the Class 1A National Insurance rate for 2025/26?

It is 15% of the cash equivalent or relevant amount of benefits liable to Class 1A.

Do sole traders need to file a P11D?

Not for benefits provided to themselves, because a sole trader is not their own employee. Obligations can arise where staff receive taxable benefits. Our sole trader accounting service can clarify the position.

Can HMRC query a P11D after filing?

Yes. Keep supporting records and submit online corrections when errors are found. Our guide to HMRC enquiries explains what to expect.

Get next July under control

Tracking benefits throughout the year reduces errors and last-minute work. Whether you use our accountants in Slough or accountants in Reading, we can coordinate P11Ds, Class 1A, payroll and VAT returns within one compliance calendar.