Employers need to keep accurate records of all expenses and benefits paid to directors and employees for at least 3 years from the end of the tax year they relate to. The records will need to support and corroborate information submitted on the P11D form.
The records can be in any form but should detail the date and details of any expenses provided to employees and directors, calculations for figures entered on the P11D form and details of any contributions made by the employee towards a particular benefit.
Failure to keep accurate accounting records can result in further fines from HMRC.