File P11D(b) for Payrolled Benefits

UK companies have the option to tax employees' benefits and expenses through payroll, and the process is known as payrolling benefits. When you payroll benefits, you do not need to provide the employee with a P11D form for the benefit. However, you still need to work out the total Class 1A National Insurance contributions on the cash equivalent and file the total in a P11D(b) form to the HMRC. For more information, see https://www.gov.uk/guidance/payrolling-tax-employees-benefits-and-expenses-through-your-payroll.

In Year End > UK Year End, you can manually add Class 1A National Insurance contributions if you payroll all or some of your employee benefits.

To file a P11D(b) If you payroll all of your employees' benefits:

1. Go to Year End > UK Year End.
2. In the Year drop-down list, select the tax year that you want to file.
3. Select the legal entity.
4. Click Process Job > File P11D & P11D(b).
5. In the Employer Declaration dialog box, in the Total payroll benefits liable to Class 1A field, enter the total Class 1A National Insurance contributions for the payrolled benefits for the tax year.
6. Click Submit to file the P11D(b) form with the HMRC.

If you payroll some, but not all, of your employees' benefits, you enter the Class 1A National Insurance contributions for the payrolled benefits when you file your standard P11D/P11D(b) forms. See File P11D and P11D(b) Forms.