P11D and Online Filing - Preparing and filing P11Ds
This addresses the following: -
- Reviewing and amending transactions
- Preparing P11Ds
- On-Line Filing of P11Ds and P11D(b)
- Government gateway submission status
- Failure of a submission
- Successful Submission
- P11D reports
Reviewing and amending transactions
It is inevitable that during the tax year some transactions will not be accurately allocated to an employee/director or recorded to the correct account (and therefore the correct P11D section). An easy process exists to review and make these corrections and it is recommended that this be done on a regular basis throughout the year rather than waiting until year-end. From the Accounts menu use the Find Transaction function and select P11D Review.
Accounts - Find Transaction
From the list that is presented click the Open on the Action Box adjacent to any transaction that needs adjustment. See Transaction Review guide for more information. Everything except date and value may be amended, including adding an employee for P11D purposes.
P11Ds can be prepared and viewed at any time the user desires; filing and printing for distribution to employees and directors, however, is usually completed after the income tax year end on the 5th April.
Preparation is initiated via the HMRC menu.
HMRC - Expenses and Benefits - click the red + to add P11D for Tax Year End 2017/18
A screen with the P11D constants that the system is using for the income tax year is presented. A user may overwrite a constant if desired. To move on, confirm that use of the constants as presented and/or amended by ticking the declaration box and then SUBMIT.
Where payrolling of benefits and expenses is being used, those P11D sections that have been agreed with HMRC for payrolling purposes and have been indicated.
A list of all employees/directors is then presented.
To compute a particular P11D click on PREPARE EMPLOYEE P11D from the Action Box, a second screen of constants is presented that are specific to a particular employees circumstance.
Amend the Number of Weeks Qualifying for Childcare Allowance in PAYE year if for the particular employee/director it is less than a full year. The Weekly Childcare Voucher Qualifying amount of £55.00/week is for basic rate earners. For higher rate and additional rate earners the limits are reduced to £28.00 and £25.00 per week respectively. The user is strongly advised to confirm these lower rates themselves or with their advisor and change the field value accordingly.
If this employee/director has used some of the Reduced Mileage Rate Threshold in another employment amend the figure to what is left in this employment.
Initially the method of calculating the cash equivalent interest benefit will be the Average Balance method, if there is an election or an officer from HMRC has selected the Exact Daily Balance method click that instead.
If there have been more than one qualifying relocation for the particular employee/director in the tax year change the Number of Relocations Qualifying for allowance to the appropriate number. For each qualifying relocation a tax-free amount is available, however for multiple moves it may be that not all the allowance on one move is used but any balance is not available to reduce any liability on another relocation. Under these circumstances an adjustment will need to be entered in the Amount of tax-free allowance for use box. For example; relocation 1 had expenditure of £16,000 if the tax-free amount is £8,000 the liability is £8,000. In relocation 2 the expenditure is £5,000 so there is no liability, but the balance of the tax-free amount of £3,000 will be the adjustment when the number of relocations is set to 2. The net liability over the two being £8,000.
To move on, confirm that use of the constants as presented and/or amended by ticking the acceptance declaration and SUBMIT. The system computes the P11D return and presents the figures on screen for inspection.
The CLEAR button will cancel the computation and return to the preparation screen with nothing saved. The OK button returns the user to the employee list retaining the P11D record in preparation for online filing. The user is taken back to the preparation screen and adjacent to the employee/director are a number of icons allowing for viewing the screen presentation again, deleting the computation or printing the return. Note that printing can be done in batch when all returns have been prepared.
Clicking on REVIEW SECTION 336 CLAIM from the Action Box allows a user to amend the system figures as appropriate prior to printing. Note that the Government gateway does not currently allow 336 Claims to be filed online. They will need to be submitted as hard copies to HMRC. To store any changes click SUBMIT.
Note you are strongly advised to seek advice from your advisor if anything is unclear or uncertain
On-Line Filing of P11Ds and P11D(b)
Return to the P11D Year End Filings Screen when all P11Ds have been prepared reviewed and are ready for filing.
From the Action Box click P11D(b), A summary screen is displayed.
The number of P11Ds prepared is shown under the P11Ds (count) column. Use a back button to return to P11D Year End Filings Screen.
The multi-tabbed screen is presented. The first tab - Submission Details confirms the tax year and requests the status of the sender, either as an employer or as a tax agent. The number of P11Ds being submitted is shown and the Employer Declaration is selected from the All P11D details for the year. The usual declaration will be 'are due'. You may select 'Are not Due', Liberty Accounts will process this declaration to the gateway as well as any P11Ds.
The Class 1A NICs tab summarises the Class 1A NIC liability computed from the individual P11D returns.
Adjustments can be made if necessary, but you are strongly advised to seek professional help if you are at all unsure. The next two tabs just report the constants used in computations and stored with the P11D returns. They do not form part of the on-line submission.
The User Feedback tab provides status, progress and message information from the HMRC gateway.
When ready click SUBMIT and the summary screen is redrawn with a SEND button shown under the P11D(b) column.
To start the online filing process, click the SEND button. The summary screen updates with the status.
Polling takes place each hour and the status will show 'Queued' until polling is attempted. Until polling has started the submission may be recalled by clicking the RECALL button.
Click the VIEW button under P11D(b) to track messages from the Gateway under the User Feedback tab. We recommend that you regularly review messages until you are sure that the full return has been made. The status will be one of the following:
Government Gateway Submission Status
Indication of the current status that will be one of the following:
- Indicates that an item exists in the system but has not been "sent" by the user. Typically an item is generated at the request of the user. Once it has been generated the user will need to review and possibly add to the automatically generated details of the submission. In all cases the user will at least need to add their authentication credentials as provided by the Government Gateway before they can successfully submit to the Gateway.
- Indicates that an item has successfully passed local validation in the system and is now in a queue waiting to be sent to the Government Gateway. Queued items are normally processed each odd hour on the hour e.g. 11:00, 13:00 etc
- Indicates that an item has been recalled from the Gateway queue. An item can be recalled from the queue at any time before it has been sent to the Government Gateway. It is also possible to recall an item if it has failed remote validation and a change is required before resubmission. e.g. incorrect Gateway password.
- Indicates that an item has been sent to the Government Gateway and the system is currently polling the Gateway at each even hour on the hour (12:00, 14:00 etc) to check the status of the submission.
- Failed - Local Validation:
- Indicates an item has failed local validation. The system uses its best endeavors to validate data before trying to send it to the Government Gateway. An item with this status will need to be changed before it can be successfully queued for the Gateway.
- Failed - Remote Validation:
- Indicates that an item has failed validation in the Government Gateway system. An item in this state can be deleted or recalled for any necessary changes to be made prior to resubmission.
- Indicates that the Government Gateway has acknowledged an item as a successful submission.
- Failed - Max Tries:
- Indicates that the system has given up trying to send an item to the Government Gateway. If you have an item at this status you should contact Liberty Accounts support.
Failure of a Submission
If the submission fails, take note of the message that describes the nature of the failure. Delete the failed submission so that the system is reset and corrections may be made by clicking Make the corrections as necessary and repeat the submission process described above.
We recommend that you regularly review messages until you are sure that the full return has been made.
After successful submission, P11Ds may be viewed and printed but not changed. The system will retain the copies of the returns.
Each employee/director will need to be given a copy of their P11D for their records and to support and any income tax returns that they are obliged to make.
Aside from the actual P11D reports and any supporting Section 336 Claim reports which can be viewed or printed from the HMRC Menu
There are number of supporting reports available under the Reports menu.
Reports - P11D Reports
- The P11D Expense Transactions report displays are the transactions under each P11D Section (B,C,D,I,J,K,L,M,N).
- The Mileage Allowance Payments report show the details making up any figures under Section E.
- Company Car Allocation report shows the background information used in the P11D computation for Sections F and G.
The background details for Section A can be found in the Transactions By Asset Report.
Reports - Transaction - Transactions by Asset
Likewise the background information for Section H can be found from an appropriate Transactions By Account Report.
Reports - Transaction - Transactions by Account Report
For an employee Loan select Loans to Employees under Current Asset Account Type. For directors current account details select Directors Current Accounts under Liability Account Type.