General and background information


In this section enter any personal bills that you have paid on behalf of your employee. Although the taxable value is reported here, employer’s also have to account for the Class 1 NIC liability through the payroll at the time the payment was made. This is because the employer has settled the employee’s pecuniary liability (i.e. paid a bill that has the employee’s name on it).


This P11D section is also used to report certain anti-avoidance rules e.g. where the employer attempts to pay the employee in readily convertible assets


Employee payments

Form P11D has three ‘catch-all’ sections. The first part of this section is one of them. The others are section K: ‘Services supplied’ and section N: ‘Expenses payments’ made to, or on behalf of, the employee. If an employee holds the contract for the supply of goods or services, report any sums paid by the employer in this section, e.g. gas and electricity bills. A less common example is settling a holiday account.


Information required

A description of the payment and the amount paid.


Measure of expense

The amount paid


Practical point

Where possible, contract directly with the supplier of the goods or service, thus avoiding employee’s Class 1 NICs. These benefits would be reportable in section K.


Tax on notional payments

PAYE applies to benefits provided in the form of readily convertible assets and to payments made in certain circumstances by intermediaries and foreign employers, i.e. notional payments. The tax due through the PAYE system may itself form a taxable benefit. 


Information required

The PAYE tax due on a notional payment not paid by the employee either by deduction from salary or reimbursed to the employer or deemed employer within 90 days of receiving the notional payment.

 

Measure of expense 

This is the amount of PAYE that was payable and not made good by the employee within 90 days of receipt of the readily convertible asset or the payment from an intermediary.


P11D Form: Section B


P9D Form: Section A(2) (Obsolete after 2015/16 Tax year)



P11D (Guide) : Section B

Payments made on behalf of the employee

Enter any amounts that your employee should have paid, but you paid instead.

Read chapter 26 of the 480 expenses and benefits guide for further information.

Tax on notional payments

PAYE applies to employment income taxable under new Part 7A ITEPA 2003 (certain income provided through third party arrangements), given in the form of:

  • a cash voucher
  • vouchers and credit tokens which are used to acquire assets or are themselves readily convertible to cash.
  • a readily convertible asset

PAYE also applies to employment income paid by an intermediary of the employer.

Enter tax on these notional payments not recovered from the director or employee within 90 days of the end of the tax year.



Additional HMRC Documentation and external help 

Click the links below to go directly to the HMRC website to download or view the PDF or help files listed below.


HMRC P11D Guide

https://www.gov.uk/government/publications/paye-end-of-year-expenses-and-benefits-p11d-guide


HMRC Booklet 480 (Chapter 6) 

https://www.gov.uk/government/publications/480-expenses-and-benefits-a-tax-guide



Manual data entry

Benefit and expenses records are assigned to an employee record within the system. The software will require a certain amount of information in order to calculate a benefit in kind value. The information required to be entered is particular to each section of the P11D.  


How to manually enter a Section B benefit:


1

Select the employee record to that you wish to assign the benefit to

2
Select benefit section “Section B” from the drop-down benefit selector – or click on the “Section B” icon at the top of the screen.

3 

Click the ADD button.
4
Select from the list of existing benefit descriptions for this P11D section and click OK - or click the ADD button to enter a new benefit description of your own.


5

The following data points are used to calculate the benefit in kind for this benefit type:

A - Amount paid



Having entered the necessary details of the benefit, click on SAVE to save the record.




The BIK record will be saved and displayed sucessfully.




Importing Data 


File Type

The system can import data in numerous file types but a CSV (comma separated values) file recommended, it removes the complexities of Excel formulas and formatting.


Header row

The header row is used by the system to automatically select the correct import target field to match for import. It is therefore recommended to use the exact naming convention so as to remove the need to have to manually select the appropriate system target field.  Click the link to download the software Import header row TEMPLATES  


Square block of data

Try to remove all data above header row, below the last record and after the last column of data. This just helps the software interpret the data correctly.


Consistent data

The final column of data should contain consistent data i.e. a value in every cell. This ensures that the software moves to the ‘next row’ at the correct time. As you can select the data that is imported, it is sometimes wise to simply paste a column of ‘xxx’ on the far right to provide an import end.


Formatting

The format of some of the data to be imported is very important – the following pages clearly show what data and formats the software is expecting to import.


Key field

ALL data imported must contain a Key field - NI Number or Payroll Number for employees and Registration Number for cars – this is necessary to ensure that data can be married up correctly. Key fields are clearly highlighted in the table.


Column Order

The column order in the spreadsheet is not important, as the P11D Organiser will automatically map as many fields as it can, and will remember the settings made during the import process as a configuration file for future use.


Compulsory Fields

Certain other fields must also be included in order for the import routine to correctly allocate/calculate benefits particular to individual import routines. These Compulsory fields are also clearly highlighted in the tables.


Optional Data

The remainder of data that can be imported is categorised as Optional and is displayed in standard type.


Data Fields table - Section B

Information
P11D Field code
Type
Size
Inclusion
Pre-Format
Value Of Benefit
CASHEQV
Numeric

10

Compulsory

 

Value Of Cash Foregone (OpRA)
CASHFGONE
Numeric

10

Optional

Benefit Date
DATE
Date

8

Optional
dd/mm/yyyy
Description of Benefit
DESCRIPTIO
Character

50

Compulsory

 

NI Number
NI_NUMBER
Character

10

Key field

 

Additional description
NOTES
Character

30

Optional

 

Payroll Number
PAYROLL
Character

20

Key field

 

Payrolled Value
PAYROLLED
Numeric

10

Optional



Step by step guide to importing data


STEP 1 – IMPORT

Select FILE > IMPORT WIZARD (or use the system IMPORT icon to go to the Import wizard)


STEP 2 – ROUTINE

Select the Import routine to run: B Payments mace on behalf of the employee



STEP 3 - SELECT SOURCE FOLDER TO USE

Navigate to and select the location of the folder that contains the import .CSV file to be used in the import process 



The system will also display all other spreadsheet import files that are saved in the the same directory.


STEP 4 – MAP SOURCE DATA TO TARGET FIELD

Using the import template provided, the system will automatically configure and select the matching target field for the source data on the source CSV file (header row displayed on the left will match the correct target field displayed on the right). Click NEXT


TIP: Use the "Reconfigure P11D Organiser target field name" button to assist with this "mapping" process.


NOTE: If you are not using the template then you will need to manually select the correct target fields using the “TARGET FIELD SELECTION” button. (These will initially be un-selected and displayed as ** EXCLUDED ** in the TARGET FIELD column) 




STEP 5 – TARGET FIELD & DATA VALIDATION

The system will display the data in a table. A key ID selection of must be made between either PAYROLL number or NI Number (unique reference for employee)

 

GREEN entries are EXISTING benefit records in the system benefit database that will be updated/replaced.(recognized by their DESCRIPTION and PAYROLL)  

WHITE entries are NEW Benefit records being added to the system benefit database (recognized by their PAYROLL number and DESCRIPTION)

YELLOW entries are NEW benefit records/categories being added the system benefit database. (not recognized by their DESCRIPTION) 

PURPLE entries are NEW employees so cannot be assigned benefits during this import process (not recognized by their PAYROLL number)



Clicking the NEXT button, the system will begin to validate the data and any records failing validation rules will be referred to in a series of pop-up messages. Any resulting invalid records will be removed and saved to an error log file at the end of the import process.


STEP 6 – BENEFIT DESCRIPTION CATEGORIES & PROFILE VIEW

The system now displays the total number of records being imported for each displayed description and provides an opportunity to Add, Edit or Exclude the benefit records displayed.


Any NEW benefit categories (not recognized by DESCRIPTION) will need to be added & defined - click Add to be do this to be able to continue to the next stage of the import process.



STEP 7 - CONFIRM & SAVE BENEFIT PROFILE 

The new benefit description will be added and saved, additional properties such as Class 1A NIC settings or pay-rolled benefits can be defined here, once complete click OK  save and proceed.




STEP 8 - BENEFIT DESCRIPTIONS SUMMARY

The system displays a summary of the total number or records for each benefit description in the import. If you are happy with using the revised benefit categories and total of entries as shown, click Next 




STEP 9 – COMMIT DATA CHANGE

The system will now commit the data & create the benefit records. The system will confirm the numbers of records to be added & updated and the total number of records from the source file.

NOTE - Backup DATAFolder is recommended as it gives you a restore point prior to committing the changes being made during the import.

CLICK FINISH



STEP 10 – EXIT IMPORT ROUTINE OR DEAL WITH ERRORS 

EXIT IMPORT

If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.


ERRORS HANDLING 

Any records removed during the validation process will be saved as an “Error file”
These error files can then be viewed and saved in MS EXCEL. Having made the necessary corrections and changes to the invalid records contained in the "error file" it can be used as a new source file to import the corrected records and complete the import for ALL RECORDS (initial load plus the subsequent "fixed" error records)


If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.



If your file contained no errors that need to be re-imported, simply click CANCEL to exit from the import wizard and return to the main P11D Organiser system.