General and background information


The costs of providing most forms of medical and dental treatment or insurance that the employer has contracted for should be entered in this section. The exceptions include: – 

  • Eye tests for VDU operators
  • Annual health checks that all employees are eligible for
  • Any health insurance required for necessary overseas travel


Payrolling Medical Payments

Medical insurance payments are often chosen to be payrolled by employers in an attempt to minimise the number of P11D's they have to fill in. However, HMRC have stated in their Employer Bulletins that payrolling still requires the employer to provide a letter to the employee stating what has been payrolled at the end of the tax year. Their instructions leave the employer with a need to a) inform the employee at year-end and b) adjust the Class 1A NIC value to accommodate these "Payrolled benefits". The approach we recommend to accommodate for these requirements is to mark your medical payments as Payrolled, enter the amount of the premium paid together with the amount made good through the payroll by the employee thus leaving a nil value on the P11D as this, in turns creates the necessary Class1A adjustment on form P11D(b). This loaded information can then allow you comply with the requirement to inform your employee of what has been payrolled by producing an Employee Benefit Statement in the Reports section of the product.


Information required

The cost of medical and dental treatment or insurance for such treatment is required providing the employer has entered into the contract for the treatment or insurance. In a group policy, the cost of the insurance is the employee’s share of the total premiums paid. Deduct any amount made good or from which tax was deducted and show the resultant cash equivalent. Use section B if the contract is in the employee’s name.


Measure of benefit

This is the cost to the employer of the treatment or insurance. The individual will rarely successfully claim that these are necessary employment expenses, unless claiming special relief for foreign travel. HMRC takes the firm view that such expenses are essentially personal.


Practical point

The cost of eye tests for employees who use a VDU for work and the cost of, or a contribution towards the cost of, the spectacles where prescribed specifically for VDU work are not a taxable benefit in kind.

P11D Form: Section I




P11D (Guide): Section I


P9D Form: None (Obsolete after 2015/16 Tax year)

There is no relevant section for a medical insurance record entered in the P11D Organiser system. Medical benefit information

will not appear on a P9D facsimile, although it will be detailed on the employee benefit statement. 



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 2014 to 2015

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 I benefit:


STEP 1
Select the employee record to that you wish to assign the benefit to 

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

STEP 3

Click the ADD button. 



STEP 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 (more information on adding a new benefit profile can be found here.

STEP 5 

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

       

  • Annual premium paid for treatment or insurance
  • Amount made good or from which tax deducted



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


If the benefit in kind is being calculated by using 2 medical entries with annual premiums that are both active during the tax year, then you will need to add the second record to cover the respective period of the benefit's availability to the employee. Just add the second record as before but with the appropriate available FROM and TO dates.



The 2 records will then accurately calculate the BIK value for the full Tax year:




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

Information

P11D Field code

Type

Field Length

Inclusion

Pre-Format

Cash Foregone 

CASHFGONE

Numeric

10

Optional


Description of Benefit

DESCRIPTIO

Character

50

Compulsory

 

Available from Date

FROM

Date

8

Compulsory

dd/mm/yyyy

Amount Made Good

MADEGOOD

Numeric

10

Optional

 

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


Premium Paid

PREMIUM

Numeric

10

Compulsory

 

Available to Date

TO

Date

8

Compulsory

dd/mm/yyyy




REPLACE MODE
Please note that any existing benefit records currently held in the system can be removed rather than adding additional records by selecting the replacement import mode of the import wizard (either inherited records as a result of running the merge/archive process or by importing records that need to be removed/replace)

Please see the specific section in the Importing Data in Replacement Mode Guide that covers this topic
 


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: I - Private medical treatment or insurance click NEXT


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.CLICK NEXT

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)

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


Click NEXT

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) - CLICK HERE TO DOWNLOAD THE TEMPLATES


STEP 5
KEY 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 that will be updated/replaced (recognized by their DESCRIPTION and PAYROLL)
WHITE entries are NEW records being added to the system benefit database (recognized by their DESCRIPTION and PAYROLL)
YELLOW entries are NEW Benefit descriptions 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 from the import and saved to an error log file at the end of the import process.

Example: Missing employee record (not recognized by PAYROLL or NI_NUMBER number)


Example: Invalid benefit available TO date




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, Change, Edit or Delete the benefit records displayed.

Any NEW benefit categories (not recognized by DESCRIPTION) will need to be added and 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.


The benefit profile properties that can be set include:-
Class 1A NIC
Ordinarily system pre-set and unchangeable (greyed out) as being clearly defined by legislation (Brown or Blue boxes on the P11D form). Although for certain sections of the P11D, the setting can be user-defined so as to set to either “Pay” or “Not pay” Class 1A NIC for a specific benefit type. e.g. “Overseas Medical Insurance” = Class 1A NIC setting “NO”
Payrolled benefit
Set to “YES” where a benefit has already been taxed through the payroll.  This will allow the system to adjust the values for employer Class 1A NIC liability for the payrolled benefits and therefore make the appropriate adjustment for Class 1A NIC on the P11D(b) facsimile report.
Optional Remuneration Arrangement
Set to "Yes" if this benefit category is to be included in the new OpRA arrangements for salary sacrificed benefits and the values compared with the traditional method of calculating a benefit in kind value.
Default value
A fixed value setting used for a common type of benefit.  e.g. “Family Bupa cover” set to £750 will globally change/set ALL records in the system of this type for the selected Tax year.
Dispensation
Turning on/off and entering a percentage of a benefit value so that the value is still reported on employees benefit reports but NOT REPORTED TO HMRC either
electronically (File by internet) or by any other means (P11D (b) facsimile report)
Part 5 ITEPA2003 expenses claim
A setting used to create a value to “counter claim” where expenses values that are not covered by a dispensation but are “wholly and exclusively in the performance of the duties of the employment” to form a Part 5 ITEPA 2003 claim.
Prorata the dates to days available
An option for setting available FROM & TO dates for all matching benefit descriptions. The dates are then applied and used in conjunction with a pro rate setting to automatically calculate benefits based on the dates available. i.e. setting FROM date to 01/01/2014  and TO date to 31/12/2014 in the 2013-14 Tax year would calculate a total of 95 days availability of that benefit and then be used to calculate a benefit-in-kind value as such. e.g. a £750 annual premium divided 365 x 95 = £195.21
Available From & To dates
An option for setting available FROM & TO dates for all matching benefit descriptions. The dates are then applied and used in conjunction with a pro rate setting to automatically calculate benefits based on the dates available. i.e. setting FROM date to 01/01/2014  and TO date to 31/12/2014 in the 2013-14 Tax year would calculate a total of 95 days availability of that benefit and then be used to calculate a benefit-in-kind value as such. e.g. a £750 annual premium divided 365 x 95 = £195.21




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.

ERROR 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)


Sample Error file for I - Private medical treatment or insurance



The STATUS column (N) displays a code to explain the reason why the record was rejected, in the example above, we can see that:-
The record for employee with PAYROLL PR0007 was removed as the benefits available "TO" date was less than the expected date range (the TO date is incorectly stated as 01/12/2014)  
The records with PAYROLL in the status column cannot be imported as the employees PAYROLL number was not found in the system (the employee record should always be imported first!)
The records with PREMIUM in the status column cannot be imported as the benefit records PRMIUM value is invalid (e.g. 0 or negative values)
The records with MADEGOOD in the status column cannot be imported as the benefit records MADEGOOD value is invalid (e.g. 0 or negative values)



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.


REPLACE MODE
Please note that any existing benefit records currently held in the system can be removed rather than adding additional records by selecting the replacement import mode of the import wizard (either inherited records as a result of running the merge/archive process or by importing records that need to be removed/replace)

Please see the specific section in the Importing Data in Replacement Mode Guide that covers this topic