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