Payrolling benefits vs. P11D

If you provide taxable benefits or benefits in kind (BIKs) to your employees, for example company cars or medical insurance, you need to submit a P11D(b) form to HMRC by 6 July each year.

You can either include the cash equivalent value of the benefits in your payroll and deduct the tax, or complete form P11D for each employee:

  • You can use Sage 50cloud Payroll to payroll benefits, with the exception of accommodation, beneficial loans and credit tokens or vouchers.
  • Alternatively, Sage 50 P11D is a convenient way to help you manage your employees’ taxable benefits and calculate Class 1A National Insurance.  It’s easy to use and there’s no requirement for in-house experience.

Using Sage 50cloud Payroll

  • You must register with HMRC before before 5 April 2019 for the tax year 2019/2020.
  • Once the tax year starts you have to payroll the benefits for the whole of the tax year, or until you stop providing them.
  • You need to work out the Class 1A National Insurance contributions on benefits and manually complete form P11D(b).
  • If you make a mistake, you may need to roll back or restore your data.
  • You need to calculate the P11D values or cash equivalent manually, then manually enter the figures into Sage 50cloud Payroll.

Using Sage 50 P11D

  • You can print P11D forms for your employees.
  • You can submit your P11D forms and P11D(b) to HMRC in just a few clicks.
  • It's easy to correct mistakes, you can just delete the benefit and start again.
  • If an employee leaves part-way through the tax year, it doesn't matter, they don't have to be employed to receive the benefit.
  • When you set up your benefits, you can use the Sage 50 P11D software to calculate the figures.

P11D live demos

If you're new to Sage 50 P11D, or need a refresher, why not attend a live webinar and learn how to manage your expenses and benefits from our Sage expert. Register now >

Interested in Sage 50 P11D?

It includes the latest legislation for the tax year and ensures the information you submit to HMRC is secure and accurate. Buy now >

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