The July P11D deadline and new 2026 statutory sick pay rules employers must know
If you provide staff benefits, your P11D and P11D(b) forms for the 2025/26 tax year are due by 6 July 2026. Class 1A National Insurance must then be paid by 22 July if you pay electronically, or 19 July if you pay by cheque.
At the same time, the statutory sick pay rules changed from 6 April 2026, so this is a useful moment to check both your benefits reporting and payroll processes. The deadlines are fixed, the calculations matter, and small errors can quickly become expensive.
What the July P11D deadline involves
A P11D records taxable benefits and expenses provided to employees and directors during the tax year. Common examples include company cars, private medical insurance and beneficial loans. The P11D(b) is the employer declaration showing the Class 1A National Insurance due on those benefits.
For 2025/26, the Class 1A NIC rate on expenses and benefits is 15%, following the wider rise in employers’ National Insurance. If you are unsure what counts as a taxable benefit, our note on notional benefits is a sensible place to start.
Filing is electronic only. HMRC stopped accepting paper P11D and P11D(b) forms from April 2023, so submissions must be made through PAYE Online or recognised payroll software. Clean year-round records make July far less painful, which is where solid bookkeeping support earns its keep.
| Item | Date or rate |
|---|---|
| File P11D and P11D(b), and give employees their copies | 6 July 2026 |
| Pay Class 1A NIC by cheque | 19 July 2026 |
| Pay Class 1A NIC electronically | 22 July 2026 |
| Class 1A NIC rate for 2025/26 benefits | 15% |
| Late filing penalty | £100 per 50 employees, per month or part month |
| Late payment penalty | 5% after 30 days, with further charges at 6 and 12 months, plus interest |
Payrolling benefits is changing, but not all at once
Mandatory payrolling of benefits in kind has not fully replaced P11Ds for 2025/26. The government is moving to a phased approach from April 2027, with further changes expected from April 2028. Employment-related loans and accommodation are expected to remain outside mandatory payrolling for now.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
That means many employers still need to manage the traditional P11D cycle this year. We covered the difference between payrolling and P11Ds if you want the detail. Directors running their own companies should also read up on payroll compliance for director-only companies, because smaller setups are still caught.
The 2026 statutory sick pay changes
From 6 April 2026, statutory sick pay changed in 2 important ways. The 3 unpaid waiting days were removed, so SSP is payable from the first full day of sickness absence. The Lower Earnings Limit was also removed, so eligible employees no longer need average weekly earnings of at least £125 to qualify. You can check the current detail on GOV.UK.
| Before 6 April 2026 | From 6 April 2026 | |
|---|---|---|
| When SSP starts | Day 4, after 3 waiting days | First full day of sickness absence |
| Earnings threshold | £125 a week minimum | No earnings threshold |
| Weekly amount | £118.75 flat rate | Lower of £123.25 or 80% of average weekly earnings |
So, an employee earning £135 a week would receive SSP of £108 a week, while someone earning £400 a week would receive the £123.25 weekly cap. Your payroll software needs to handle that calculation correctly. If recent wage and NIC rises have squeezed your margins, our thoughts on protecting your margins after wage rises are worth a read.
The Fair Work Agency launched in April 2026, adding further enforcement focus around employment rights, including sick pay. A good outsourced finance department keeps this off your desk, and newer businesses often rely on accountants for start-ups to get payroll right from the outset.
Why these changes matter together
The direction is clear. Employer costs are higher, payroll coverage is broader, and reporting deadlines remain unforgiving. If your records still live across scattered spreadsheets, this is the year to tidy up, whether through Xero bookkeeping or a proper sit-down with your accountant. Property clients are not exempt. A landlord accountant handles the same payroll duties wherever staff are employed.
Frequently asked questions
What is the P11D deadline for 2025/26?
You must file P11D and P11D(b) forms by 6 July 2026, and pay Class 1A NIC by 22 July electronically or 19 July by cheque.
Do I still file a P11D if I payroll benefits?
If benefits are correctly payrolled, you usually do not file a P11D for those benefits. You still submit a P11D(b) and pay the Class 1A NIC due.
How much is statutory sick pay in 2026?
From 6 April 2026, SSP is the lower of £123.25 a week or 80% of the employee’s average weekly earnings.
Who qualifies for SSP now?
Eligible employees qualify once they have started work and meet the notification rules. There is no longer a Lower Earnings Limit or 3 waiting days.
Talk to us before July
If the July deadline or the new sick pay rules leave you uncertain, speak to the team at FHP Accounting. We work with employers across the Midlands and beyond as trusted accountants in Nottingham, and we can take the payroll admin off your plate entirely. Call 0115 648 8686 or get in touch today to book a free consultation.
I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.
Need Expert Accounting Advice?
If you are unsure about tax, bookkeeping, payroll, property accounts or business finances, speak to the team at FHP Accounting for clear, practical guidance.
