To use the P11d feature you will need to go to Payroll Settings > Pay Run Settings > Benefit Categories.
You need to select the P11Ds tick box to show that you will be reporting benefits on P11D forms at the end of each tax year and press Save. Please note you can select to tick both boxes but you must make sure that you have ticked the P11Ds box if you are processing P11Ds.
Next you will need to create a new benefit category by clicking on the add button:
You will then have the following fields to fill in and complete:
Year - Shows the year start date for the benefit to be active for.
Carry benefit forward - Tick or untick the carry benefit forward check box, any benefit categories with this check box ticked can be duplicated for the next year as part of the year end process.
Benefit type - Choose from the drop down list of benefit types - e.g. F: Cars and car fuel or I: Private medical treatment or Insurance.
Payrolling benefit - The payrolling benefit check box should be unticked.
Once a benefit type is chosen, a number of fields relating to that benefit type, will appear:
NI treatment - defaults to the NI treatment for the selected benefit type
Name - free text field for you to name the benefit e.g. Health insurance
Annual cost to you or amount foregone - Here you can enter zero if the amount is to be an amount that differs for individuals within the business and you can edit this when you link the employees as described below or you can add in a fixed amount if it is the same amount for each individual that this benefit has applied to.
Next you will need to add some employees that are linked to the Benefit Category. You can do this by clicking on the "No linked employees" text as pictured below:
If you click on the add button once you have clicked on the linked employees text, you will then be able to search for individual employees or be able to tick a box next to their name in the list of employees that will be available. Once you have the employees that you want to link to the category selected you should press save.
To add a terminated employee you will need to do that from the terminated employees details, you need to select benefits from the side menu and then you will need to click the add button on the right hand side of the page. Once you have clicked add you will be able to select the relevant benefit applicable to them from the dropdown box. The employee will now be added in the linked employees on the Benefit Category page.
To view the linked employees you would need to click on the highlighted writing 'X linked employees' and they will be listed. You will need to tick the 'show terminated employee' box as pictured below to view the terminated employees linked.
You can then edit the benefit category details for each individual by clicking on the name of a specific employee (you can do this by clicking on the linked employees and selecting the individual linked to the category in the list).
Annual cost to you or amount foregone - This will reflect the setting from the benefit category but can be changed if required. This is where you should edit the amount if you entered Zero in the Annual cost to you or amount foregone box if the amount is to be different for individual employees.
Amount made good - Add in any annual amount made good from the employee (this is an amount the employee is contributing towards their benefit, add in the whole year value even if this is being paid by the employee each period).
Once you have finished editing on an individual basis you can check the log by clicking "view log".
When you have completed all of your benefit categories you need to click on the Year End button and you will then be able to click on Generate P11Ds as pictured below:
This will take you to the P11Ds form within the reports section of the system. You can also access this via the Reports > HMRC Reporting > P11D Forms.
Next you need to select the tax year and click the "Show P11D Forms" Button:
You will then be able to see all of the Benefits that are to be included in the P11D form. You can click on the action button for each individual and download the P11D form and view it. From here you can publish the form and it will be visible for the employee in the portal. Once you have published it you will have the option to unpublish it and to send a notification to the employee that the P11D has been produced.
Employees who have access to the WorkZone app, can also view their P11Ds here, once they have been published.
PLEASE NOTE: P11D values are locked at the point in time when the form is published. If you have made changes that affect an employee's benefit values after publishing the P11D, you will need to republish it in order for the updated values to be reflected.
Once you are happy with all of the details in the P11D you will need to submit it to HMRC. You do this by clicking on the "Submit P11D Forms" as pictured below.
You will see the following warning when you press submit. This is because HMRC only accepts one P11D submission each year, any changes made after the P11D submission has been successfully sent, will need to be made directly with HMRC, outside of the software.
Once you have pressed submit and you have successfully made the submission to HMRC you will be able to view the submission in the RTI Submission Messages report or download the XML.
When all P11Ds have been published and submitted to HMRC, you can produce a P11D(b) report. You can view this report by going to: Reports > HMRC Reporting > P11D(b) Report.
This report will show you the value of all the cash equivalent benefits which attracted Class 1A NI and the amount that needs to be paid to HMRC for the selected year.
Note this value is based on the P11Ds and payrolled benefits for the relevant tax year selected. The value of all the benefits is also based on the published P11Ds and any payrolled benefits, therefore, if changes were made to published P11Ds, it will be necessary to unpublish and republish them, for the latest details to be included in the P11D(b).
It is also possible to use the NI Summary report and the Employee Benefits Report to reconcile your P11D totals and your P11D(b) totals.
Note Once the P11D(b) has been submitted it is not possible to submit another for the same year, and any changes/corrections must be done outside of the software.
The P11D(b) report is not a substitute for the HMRC report, it is for your records only (therefore, it cannot be printed and sent as a paper copy to HMRC), but it may be used to assist with any additional online filing you may need to do, if you make changes/corrections after you have submitted it to HMRC.
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