How To Complete And Submit A P11D Form
A P11D is a statutory tax form required for HMRC from employers regarding expenses and benefits in their cash equivalents for employees and directors earning £8500. Completing tax forms is never an easy or indeed enjoyable task, so we’ve here compiled a quick-as-possible guide to help you navigate and complete your P11D. National Insurance contributions (NICs) will have to be allocated for most benefits and so in this guide those sections requiring it will be noted as ‘Brown Box’ for inclusion and ‘Blue Box’ for exclusions, corresponding to their respective colours on the form itself.
Section A – Assets transferred (cars, property, goods or other assets) – Brown Box
Here you will need to calculate the cost or market value of the asset at the date of transfer. If the employee or director made a contributing payment to the asset, this should be deducted from the total. The market value being defined as the reasonable price it would be expected to fetch on the open market.
Section B – Payments made on behalf of the employee – Blue Box
This is a somewhat catch-all section for when an employer holds the contact for good or services for an employee. A common example being utility bills and will require a description of the payment and the amount paid.
Section C – Vouchers and Credit Cards – Blue Box
Include the cost of you (the employer) providing any vouchers, money, or other payments met by credit cards, exchanged for money, goods or services for the employee. Do not include any any examples that are to be included elsewhere – for example ‘Entertainment’ in section N.
Section D – Living Accommodation – Brown Box
You will need the cash equivalent of the accommodation provided for the director or employee, their family or household, by reason of employment. The benefit is based on the greater of the gross ratable of the property and the rent paid by the employer. The benefit is then reduced by the rent paid by the employee. If the property costs more than £75000 there is an additional charge. If the employer has owned, or has an interest in, the property for 6 years prior to the employee taking occupancy, substitute market value for cost. Calculate the additional charge by taking the cost or market value, deduct £75000 and multiply by the official rate of interest at the beginning of the tax year. N.B any ancillary benefits that are the employer’s liability should be noted in section M – examples being running costs and repairs.
Section E – Mileage allowance payments/ passenger payments – Blue Box
Enter the excess over and above the approved amount for each, which is exempt from tax. For allowance payments the amount approved is the number of business miles travelled (other than as a passenger) multiplied by the rates for the type of vehicle used – N.B passenger rates are when a passenger is carried for business purposes, approved at 5p per mile. The rates for different vehicles are as follows:
Kind of vehicle First 10000 business miles Each business mile over 10000
Cars and vans 45p 25p
Motorcycles 24p 24p
Cycles 20p 20p
Section F – Cars and car fuel – Brown Box
Cars -To begin with details are required of the make, model and date of first registration. Employers must then indicate the approved CO2 emissions figure. Engine size, and the letter for the type of fuel, and the date the car was first made available to the employee. The fuel letters are E (zero emissions/electric), D (Diesel) and A (all others). To calculate, you will need to enter the list price. That being the market value including the price of standard accessories. The fuel type will next effect the type amount of fuel benefit.Calculate the emissions benefit then via a percentage added to the price of the car. To find the percentage used you may consult carfueldata.direct.gov.uk. The emissions data should be shown on the vehicle registration document or from a manufacturer or dealer.
Car fuel- Fuel benefit is set at a percentage of £21,700 and is the same percentage used for calculating the car benefit and the amount calculated in entered for each car.
Section G – Van and van fuel – Brown Box
The van benefit charge is £3090, reduced by periods of unavailability. Also reduced are any payments made by an employee or director for private use. For multiple users the standard charge is to be reduced on a ‘just and reasonable’ basis. The van fuel benefit charge is £581.
Section H- Interest-free low interest and notional loans – Brown Box
There is no need to disclose details for loans if the aggregate of all loans to the particular employee does not exceed £10000 at any point in the financial year. Otherwise one shall have to disclose, 1/ The number of joint borrowers (if applicable) 2/ The amount outstanding as of the start of the loan, for that year 3/ The amount outstanding at the end of the year or at the date it was discharged 4/ The maximum amount outstanding at any point during the year 5/ Total amount of interest paid by the borrower 6/ The date the loan was made or discharged within the year, and 6/ The cash equivalent. This is calculated by determining the average loan which is opening balance, added to closing balance, divided by two, multiplied by the average official rate, and deducting interest paid.
Section I – Private medical treatment or insurance – Brown Box
Enter the cost of all medical and dental expenses arranged and paid by you and all premiums paid for insurance against such treatment.
Section J – Qualifying relocation expenses payments and benefits – Brown Box
Enter the excess over £8000 of the total amount of 1/ expenses payments, 2/ benefits (cost to you as an employer less that contributed by an employee or director) and 3/ provided accommodation. Except costs include estate agent and legal fees, stamp duty, location visits and removal costs. If you’re having difficulty evaluating this benefit we suggest seeking professional assistance from your a professional advisor or HMRC.
Section K – Services Supplied – Brown Box
Enter the additional cost of any services supplied where the contract is between you and the service supplier.
Section L – Assets placed at the employee’s disposal – Brown Box
The annual value of the use of the asset. The annual value is 20% of the market value of the asset when first provided as a benefit. Charge is reduced for periods when the asset is not available for private use.
Section M – Other Items
Here you should include details and fees of subscriptions paid for by yourself including clubs, gyms, sports,catering or leisure activities. Also include educational assistance including those awarded to an employee’s children as a result of their employment. Include relocation benefits not previously covered. Include incidental overnight expenses. Include employer provided childcare. Also include any details of expenses not previously returned under any previous heading.
Section N – Expenses made to, or on behalf of, the director or employer – Blue Box
In this section take care not to enter any amounts previously entered in Section C. Do enter general expense allowance for business travel – a rounded sum. Reimbursed travel expenses not included under an allowance – fares, hotels, meals etc. Enter entertainment payments including; a rounded sum for an allowance, sums reimbursed, specific allowances an sums paid to third parties. Trading organisation, ticking the box if any expenses payments have been or will be disallowed in tax computations – a cross if none. Tonnage Tax companies – tick if you have elected for companies profits to be calculated in accordance with paragraph 4, Schedule 22, Finance Act 2000. In the home phones, enter the amount reimbursed to an employee. Other non-qualifying relocation expenses – enter amounts that employees should have paid but that you paid instead, where the expense was not exempt. Other expenses – enter any expense incurred not registered in any other heading.
Hopefully that will help most of you go most of the way to completing a P11D successfully. If still in doubt about any specifics, one can seek advice from HMRC with online help posted at the HMRC website. For reporting and filling, you can use commercial payroll software, use HMRC’s PAYE online service, HMRC’s end of year benefits and expenses service, or download a P11D form from the HMRC website sending to HMRC NIC and EO, Room BP8002, Tynemouth House, Benton Park View, Longbenton, Newcastle Upon Tyne
Aug 5, 2015