General and background information


Enter the additional cost of any services supplied where the contract for the service is between the employer and the supplier, otherwise use section B.


You should report details of goods or services that are offered free or at a discount in this section, e.g. beer tokens, stress counselling etc.


The amount that should be entered should be the higher of the following:-

  • The market value of the goods - the second hand value in the hands of the employee, or 
  • The extra costs incurred by the employer in buying the goods or providing the services, less
  • Anything made good by the employee.

If the goods or services are provided partly for business and partly for private use, the employee may be able to claim a tax deduction, or the employer may be able to include the business use in a dispensation.


The extra costs incurred by the employer

There was a tax case (Pepper v. Hart) which defined the term “cost to the employer” as being the additional cost to the employer in providing a service. Therefore if you were going to provide the employee with a service primarily for business purposes & the employee used that service for some degree of private purposes, the initial cost of providing the service will not be taxable (as it is primarily being provided for business purposes). Only the proportion of additional costs relating to private usage will be taxable.


It is for this reason that the line rental of an employee’s home telephone in the employers name is non-taxable as it is provided mainly for business purposes; only the proportion of private calls is taxable on the employee.

Calculate the benefit by taking the extra or marginal cost of providing the service. For in-house services, this amount takes no account of fixed costs that are incurred by the business anyway. Services bought in are generally chargeable on the full cost, but do not report them if they qualify as tax-exempt items, e.g. canteen; workplace nursery places; training; car parking near the workplace; late night transport; and in-house sports facilities. Office accommodation supplies and services are exempt from tax and Class 1A NICs if private use is not significant.


Information required

The extra cost of providing the services, less the amount either made good by the employee or which has suffered a tax deduction – the difference being the cash equivalent. Only use this section if the contract for the service is between the employer and the supplier, otherwise use section B.


Measure of benefit

Calculate the benefit by taking the extra or marginal cost of providing the service. For in-house services, this amount takes no account of fixed costs that are incurred by the business anyway. Services bought in are generally chargeable on the full cost, but do not report them if they qualify as tax-exempt items, e.g. canteen, workplace nursery places, training, car parking near the workplace, late night transport and in-house sports facilities. Office accommodation supplies and services are exempt from tax and Class 1A NICs if private use is not significant. This exemption extends to the employees’ homes if the benefit is provided to allow the employees to perform their duties and the private use is not significant.  


Practical points

  • Free or reduced cost travel provided by transport companies has a small or negligible benefit value. 
  • Free or reduced fees for employees of solicitors or stockbrokers, for example, have a negligible benefit for time costs, but any disbursements not repaid by the employee are taxable.

P11D Form: Section K





P11D Guide: Section K

Services supplied

Enter the additional cost of any services supplied where the contract is between you and the service supplier.


Some employer provided services (whether on premises occupied by the employer or elsewhere) are exempt from charge where the private use of the service is not significant in the context of its use by the employee in performing their duties.


Read chapter 5 of the 480 expenses and benefits guide for more information.



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

HMRC Booklet 480 (Chapter 6) 



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



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

STEP 2
Select benefit section “Section K” from the drop-down benefit selector – or click on the “Section K” 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.
STEP 
The following data points are used to calculate the benefit in kind for this benefit type:
  • Annual premium paid for treatment or insurance
  • Dates of availability in the Tax year
  • Prorate the value entered based on the dates available 
  • Amount made good or from which tax deducted

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







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 line of 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
Additional days unavailableUNAVAILBLE
Numeric
3Optional




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 HERETO DOWNLOAD THE TEMPLATES

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 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 PAYROLL number and DESCRIPTION)
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 and saved to an error log file at the end of the import process.


e.g. Missing employee record (not recognized the PAYROLL or NI_NUMBER number)


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 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 IMPORTIf 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)


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.