General and background information


This section deals with employer’s assets being used privately by employees.


Examples of items that should be shown in this section include: – 


  • Motorcycles 
  • Boats/yachts
  • Private aeroplanes

The benefit is calculated by the following formula: –


Annual value

20% of the market value of the asset at the time the employee first uses it

OR

The annual rental or hire charge if greater

PLUS

Additional costs incurred as a result of private use.


Where there is insignificant private use of a company asset there is no charge. Equipment supplied to disabled employees to enable them to perform their duties of employment is exempt even where there is significant private use. 


Where an asset was first used to provide a benefit before 6 April 1980 the annual value is taken at 10% (not 20%) of its market value when first applied as a benefit. 

As indicated in paragraph 4.3 different rules apply to mobile phones, vans and cars.


If the asset is computer equipment or software, and it is lent to an employee, the first £500 of the value is exempt, provided it is not loaned under arrangements restricted to directors, or on terms that favour them.


Information required

A description of the asset and its annual value plus any expenses incurred, any amount made good or which has suffered a tax deduction, and the cash equivalent.


Measure of benefit

The annual value is 20% of the market value of the asset when first provided as a benefit. Substitute any hire charges if these exceed the annual value. The charge is reduced for periods when the asset is not available for private use. Expenditure, e.g. in maintaining the asset, is added to the benefit.


Practical points

  • Accommodation, cars and vans are chargeable using special rules and are reported in sections D, F, and G respectively (see above).
  • An asset generally available for private use attracts a full annual value, tax and Class 1A NICs charge, e.g. a company-owned television used by an employee in their home.
  • Most assets provided for business purposes are exempt from both tax and Class 1A NICs even if insignificant private use arises.
  • Assets used and generally available for business and private purposes attract an annual value, but a partially offsetting tax deduction for the business use may be available to the employee. However, a Class 1A NICs charge arises on the full amount of the benefit (CWG 5 Appendix 1).
  • Assets not generally available or placed at the employee’s disposal do not attract a full annual value, but a value is based on the days actually available instead. The advantage is that the tax charge is based on actual usage, e.g. a company aeroplane used for business travel and commercial hire but available for private bookings by the employees only when not otherwise in use. 

P11D Form: Section L




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

There is no relevant section for an “Asset placed” record entered in the P11D Organiser system. Assets placed at the employee’s disposal benefit information will not appear on a P9D facsimile, although it will be detailed on the employee benefit statement.



P11D Guide: Section L

Assets placed at the employee’s disposal

Enter the annual value of the use of the asset (or the rent or hire charge if this was greater).


Read paragraph 6.7 of the 480 expenses and benefits guide and paragraph 13 in part 3 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.


Some employer provided assets (whether on premises occupied by the employer or elsewhere) are exempt from the charge where the private use of the asset is not significant in the context of its use by the employee in performing their duties. Certain types of benefits such as the use of vehicles (including boats and aeroplanes) are excluded from the exemption.


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


Equipment provided to employees with a disability

There is no taxable benefit if an employer provides equipment (for example, a wheelchair or hearing aid) to an employee with a disability to enable the employee to take up or retain work, and where the employee also uses the equipment for significant private use.



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.



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 L benefit:

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


2. Select benefit section “Section L” from the drop-down benefit selector – or click on the “Section L” 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:-


  • Market value of asset when first provided
  • Rent or hire charge paid by employer
  • Other expenditure met by employer in connection with the asset
  • Less any amount made good by employee.



Calculations

Toggle a view to display the Show calculations 


and Modify calculations screen




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

Date

DATE

Date

8

Optional

dd/mm/yyyy

Description of Benefit

DESCRIPTIO

Character

50

Compulsory

 

Available FROM date

FROM

Date

8

Compulsory 

dd/mm/yyyy

Made good by employee

MADEGOOD

Numeric

10

Optional

 

Market value

MKTVALUE

Numeric

10

Compulsory

 

NI Number

NI_NUMBER

Character

10

Key field

 

Notes

NOTES

Character

30

Optional

 

Other expenses

OTHEREXP

Numeric

10

Optional

Payroll number

PAYROLL

Character

30

Key field

 

Payrolled Value 

PAYROLLED

Numeric

10

Optional

Rent paid

RENTPAID

Numeric

10

Optional

 

Available to Date

TO

Date

8

Compulsory

dd/mm/yyyy



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: L - Assets placed at the employee's disposal 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
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 date value in record



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.
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)

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.