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.
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.
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
Private medical treatment or insurance
Enter the cost of all medical and dental expenses arranged and paid by you and all premiums paid for insurance against the treatment.
If you paid medical or dental expenses, or insurance against the treatment, arranged by your employee, enter the amount you paid at section B of form P11D.
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
HMRC Booklet 480 (Chapter 6)