P11D and Online Filing - Section by Section

Having prepared the system for P11D information collection the following describes how data is processed for each of the 14 sections of the P11D form.

This guide addresses a P11D form section by section.

Section A - Assets transfered such as cars, property, goods or other assets

Deals with the transfer of an asset to an employee/director at below market value. This is managed via the asset register, selecting the asset and disposing of it to the employee.

Expenditure - Assets (and Vehicles) - Assets - EDIT the asset - Disposal Tab

Tick the disposed box, enter any value received from the employee and enter the disposal date. Note this date is used to determine the appropriate tax year. Finally select the employee/director to which the transfer applies and select the P11D classification form the list.

Click the SUBMIT button to confirm. The P11D liability is calculated by taking the net book value of the asset less any disposal value. If the appropriate market value were more than the net book value of the asset, it will be necessary to revalue the asset before disposal.

Return to the list of sections

Section B - Payments made on behalf of employee/director

Enter any transactions in accounts linked to Section B and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section B are indicated with a B in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section B are indicated with a B in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Section C - Vouchers or credit cards, includes child care vouchers above a weekly value

Enter any transactions in accounts linked to Section C and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section C are indicated with a C in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section C are indicated with a C in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

For qualifying childcare vouchers, only the excess over a threshold becomes a P11D liability. The system maintains the details of the threshold for a particular tax year and deducts it from any expenses paid. For more information see the Preparing P11D user guide.

Return to the list of sections

Section D - Living accommodation

Enter any transactions in accounts linked to Section D and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section D are indicated with a D in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section D are indicated with a D in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Section E - Mileage allowance and passenger payments

Entering all mileage claims using the mileage claim screen ensures that the system will automatically compute any liability and present the information in a P11D.

Expenditure - Add Mileage Claim

Note that if the claims are at or below the HMRC approved mileage allowance payment levels, no P11D section E is shown.

A report is available that provides the details of mileage claims that make up any P11D return for a particular employee. Navigate to the Reports menu.

Reports - P11D Reports - Mileage Allowance Payments - Select employee(s) as required
Return to the list of sections

Sections F and G - Cars and car fuel, vans and van fuel

A vehicle allocation register is used to maintain details of vehicles and the employees/directors who have use of them. This information is used to calculate any P11D liability.

It will be necessary to have to hand details of the vehicle, usually available from the registration documentation V5C, as well as the official list prices. Go to the Expenses menu to enter the details of the vehicle.

Expenditure - Assets and Vehicles - Add Vehicle

Note if the Vehicles menu items are not visible then switch them on from the entity Organisation Profile and the Optional Features Tab. Tick the Vehicle and Vehicle Allocation Register box.

Control - Organisation Profile - Optional Features

On the vehicle maintenance screen, select the Vehicle Type, Car, van or motorcycle and enter the information as required. The List Price is usually available from the vehicle supplier and the CO2 emissions from the VC5 documentation. If no valid CO2 figure is available tick the box.

Connecting a vehicle with an employee/director is done via vehicle allocation.

Payroll - Vehicles Made Available - click the red + to add an Allocation

Select the appropriate Employee and Vehicle from the drop-down boxes. The From and To dates define the period of availability. Enter the number of days in the year that the vehicle was not available for the employee/director in the Days Unavailable box. The number of days must be a period of 30 or more consecutive days throughout which the car is not available.

If the employee has made any Capital Contribution, enter the value in the box. This operates by reducing the list price value by the contribution.

Alternatively if in the tax year the employee makes a personal payment towards use of the vehicle, entered in the Paid Towards Use box, it impacts by reducing the P11D liability by the amount entered.

If fuel benefit is to apply make sure the Fuel Benefit Charge Applies box is ticked. If, in the tax year, the fuel benefit is withdrawn enter the last date on which fuel benefit is available. In a year the fuel benefit is withdrawn; enter the number of days in the year that the fuel was not available for the employee/director. This will only be required in a year the fuel benefit is withdrawn, and will be the same or a lesser figure than the days unavailable for the car.

If the fuel benefit is subsequently reinstated tick the Fuel Benefit Reinstated box. This has the impact of charging the fuel benefit liability for the full tax year.

Return to the list of sections

Section H - Interest-free and low interest loans

When a loan to an employee/director or a directors current account is set up, there is an opportunity to declare the loan as subject to a P11D return for the employee/director. As the loan will be specific to a particular employee/director a custom account must be set up for each individual as a sub-account of either 'Loans to Employees' or 'Directors Current Account'

Setting up a custom account is described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide. In this case the screen presents some differing selections.

Enter the Account Name and a Description if needed.

Select the Account Type from the list; only if the type is Current Assets - Debtors or Liability- Current (For Directors Current Accounts) will the Loan Account tab appear.

Click the Employee Loan Account box to activate the selections below:-

To make amendments simply go the account from the Accounts menu and click on the EDIT button adjacent to the account on the right of the screen. An edit screen in presented, make any changes and submit to save.

Transactions through the account will be picked up by the system for calculating loan balances and cash equivalent interest. Note it is important that any interest paid by the Employee/Director is NOT posted to the loan or current account but directly to an interest received account with the relevant employee/director selected as in the example below. This will ensure that any interest received will reduce the P11D liability.

Return to the list of sections

Section I - Private medical treatment or insurance

Enter any transactions in accounts linked to Section I and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section I are indicated with a I in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section I are indicated with a I in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Section J - Qualifying relocation expenses payments and benefits

For each qualifying relocation, only the excess over a threshold becomes a P11D liability. The system maintains the details of the threshold for a particular tax year and deducts it from any expenses paid. If there are multiple qualifying relocations for a particular employee/director in the year an adjustment to the threshold may be necessary and this is done when constants are confirmed on the creation of a P11D for the employee/director. For more information see the Preparing P11D user guide.

Enter any transactions in accounts linked to Section J and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section J are indicated with a J in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section J are indicated with a J in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Section K - Services supplied to the employee/director

Enter any transactions in accounts linked to Section K and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to section K are indicated with a K in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to section K are indicated with a K in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Section L - Assets placed at the employee/director disposal

An asset allocation register is used to maintain details of assets and any employees/directors who have use of them. This information is used to calculate any P11D liability.

Payroll - Assets Made Available - click the red + to add an Allocation

The Employee and Asset are selected from the dropdown boxes. The dates record the period of use. Note the system checks for any overlapping dates if more then one employee/director is linked to the asset. Enter the daily value for the use of the asset (This is usually a market value). The daily rate is applied to the use period determined by the To and From dates (adjusted by any Days unavailable) to determine the cash equivalent. To this is added any additional expenditure and any employee/director contribution is deducted.

Return to the list of sections

Sections M - Other Items and Section N - Expenses payments made to, or on behalf of, the employee

Enter any transactions in accounts linked to Section M or N and select an employee/director.

If you are not sure which accounts are linked, print the list of expense accounts in the chart of accounts. Those accounts linked to sections M or N are indicated with a M or N in the P11D column.

Accounts - Print Account Listing - Expense

If an appropriate account does not exist then look at the list of system standard accounts, again those accounts linked to sections M or N are indicated with a M or N in the P11D column. If nothing appropriate exists create a custom account as described in 'Relating Accounts to P11D items' section of the P11D overview and set up guide.

Return to the list of sections

Related Topics