General background information

This is a catch-all section on the P11D for items not entered elsewhere. The types of benefits and expenses you are to enter in this section include: – 
  • Professional Subscriptions 
  • Company fuel cards provided without a company car
  • Nursery Places not already exempt 
  • Educational assistance – does not include work related training
  • Non-qualifying relocation benefits paid late outside of the time limits for exemption.

You have to ascertain whether the contract for the supply of these services is made with the employer or the employee. 


If the contract is with the employer enter these items in the box for Class 1A Items. 


If the contract is with the employee then enter such items in the box for non – Class 1A Items. Class 1 NIC will also be due in these situations.


There is also a final box for an anti-avoidance measure where an employer should return details of any income tax paid but not deducted from a director’s remuneration.


The areas covered below do not form an exhaustive list and may be entered, unless otherwise indicated, in either the blue or brown box depending upon the contractual obligations between the parties. There is a blue box in which to enter income tax paid but not deducted from a director’s remuneration.


Subscriptions
Information required 
The cost of subscriptions paid by the company for or on behalf of its employees. This includes subscriptions to professional and learned societies, to London and provincial clubs and to other societies and clubs. Use the blue box if the individuals are members and liable to pay the subscriptions or fees. If a subscription covers more than one employee, split it accordingly.

Measure of benefit/expense
The cost met by the employer less any relief available to the employee.

Practical points
  1. An employee may be able to claim a deduction against the chargeable benefit if the subscription is paid to a professional or learned body related to the employment, e.g. an accountant subscribing to the Institute of Chartered Accountants in England and Wales. HMRC may also accept a claim for professional fees, e.g. those paid by a veterinary surgeon. It is recommended that employers seek a dispensation.
  2. HMRC may allow a deduction for subscriptions paid to London or provincial clubs where the purpose is to provide cheaper accommodation for visiting employees. The cost, or apportioned cost where more than one employee is involved, should be shown on Form P11D unless HMRC grants a dispensation.
  3. A subscription paid to a lunch club is chargeable on the employees using the facility. If the membership is provided for business entertaining, HMRC may accept a claim for a deduction from the employee’s tax liability providing the cost is disallowed for corporation tax purposes.

Employer provided childcare
Information required 
The full cost of the provision of non-qualifying childcare for the children of directors or employees or their families or households. The cost of provision of qualifying childcare that exceed the exempt amounts. Workplace nurseries are generally exempt from tax.

Measure of benefit/expense
This is the cost to the employer.

Practical points
  1. The total cost should be apportioned among the directors or employees concerned.
  2. Any contribution by the director or employee should be deducted from the cost in arriving at the benefit.
  3. Childcare vouchers worth up to £55 per week are free of tax and NIC.
There are now restrictions on the amount of relief for higher earners joining the scheme since 6 April 2011. The exempt amount for 40% taxpayers is reduced from £55 to £28 per week, and for 50% taxpayers to £22 per week. Only vouchers provided in excess of these amounts must be declared on the employee’s P11D. Remember that for 2013/14 the top rate of tax will be 45% giving a maximum exempt amount of £25.

Educational Assistance

Information required

Report the cost to the employer, then indicate any amount made good or that has suffered a tax deduction through the payroll, and then report the cash equivalent.


Measure of benefit/expense

The cost of school fees or other educational expenses relating to a director or employee or his family or household. The value of any scholarships awarded to the director or employee, or to members of his family or household, should also be shown.


Practical points

  1. A charge to tax does not arise on costs of training for work. This also includes training provided by a third party. The exemption covers the cost of training, assessment and registration and additional costs such as travel and childcare. Do not report these costs. If the course involves travelling and subsistence expenses as well as course fees, HMRC may look closely at the possibility of any private element included in these expenses, especially if the course or conference is in an exotic location. Recreational training is excluded from the exemption.
  2. Under certain circumstances, the costs met by an employer for an employee, who is about to leave or has left the employment, to attend certain substantial full-time courses of retraining are exempted. The conditions for this relief can be found in the Booklet 480, Chapter 5. The expenses that can be exempt are:

    • fees for the course
    • fees for examinations
    • cost of essential books
    • costs of travelling and subsistence (over and above the normal home to work costs).

Non-qualifying relocation benefits and expenses payments
Information required
The amount of non-qualifying relocation benefits and any qualifying relocation expenses that are paid late (and therefore do not qualify for relief) less any amount made good and the resultant cash equivalent.

Measure of benefit/expense
The amount paid by the employer.

Income tax paid but not deducted from director’s remuneration
Information required
The amount of income tax paid to HMRC in the year that the company has failed to deduct from the remuneration paid to the director, irrespective of the year in which that remuneration was paid.

Measure of expense
The amount of income tax that has been paid and not recovered from the director.

Practical point
This normally covers tax borne by the company, for example following a determination under Regulation 80 of the Income Tax (Pay As You Earn) Regulations (SI 2003 No 2682). The director will not receive any tax relief. Also, a director who does not repay the tax to the company cannot obtain any repayment of the tax even if his allowances or reliefs result in an overpayment of tax in respect of the payment borne by the employer.

P11D Form: Section M




P9D Form: A(2) (Obsolete after 2015/16 Tax year)





P11D Guide: Section M

Other items

Subscriptions

Enter details of fees and subscriptions arranged for and paid by you, or on your behalf. Include initial and annual subscriptions to clubs catering for leisure or sporting activities and so on.


Read paragraph 30 in part 5 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide and paragraph 25.16 of the 480 expenses and benefits guide for further information.


Read Expenses payments made on behalf of the employee if the fee or subscription was:

  • arranged by the employee and was paid by you or on your behalf

  • paid to a professional body or learned society related to the employment


Educational assistance

Enter the cost of educational assistance provided where the contract is between you and the provider of the benefit. Include the value of scholarships awarded to children because of their parents’ employment. Do not include relevant payments for qualifying retraining courses (as defined by Section 311, ITEPA 2003).


Read chapter 18 of the 480 expenses and benefits guide for further information.


Non-qualifying relocation benefits and expenses payments

Read paragraph 32 in part 5 of the Class 1A National Insurance contributions on benefits in kind (CWG5) guide for further information.


Benefits

Enter all relocation benefits (cost to you as the employer less anything paid towards the cost by the employee), which are:

  • not exempt (not listed in 480 expenses and benefits guide appendix 7)

  • not paid by the ‘relevant day’ or which fail one of the other qualifying conditions.


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


If you have any difficulty valuing any benefits contact HMRC with details before you complete the form P11D.




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 


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 M benefit:



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



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

  • Date of payment
  • Amount paid by the employer 
  • Amount made good by employee 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

Value of benefit

CASHEQV

Numeric

10

Compulsory

 

Cash Foregone value

CASHFGONE

Numeric

10

Optional


Benefit Date

DATE

Date

8

Optional

dd/mm/yyyy

Description of Benefit

DESCRIPTIO

Character

50

Compulsory

 

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





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: M - Other Items 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 NEXTNOTE: 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 date value in record

e.g. Unrecognised employee record (PAYROLL) 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.

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.