Managing P11D forms in QuickBooks Online Advanced Payroll

As a business owner, it's important to understand how to handle benefits in kind given to your employees, such as company card or interest-free loans. To report these benefits accurately to HMRC, you'll need to complete a P11D form.

This article will cover how to:

1. Access P11D form
2. Add a new benefit category
3. Link an employee to benefit category
4. Edit category details for an employee
5. View, download and publish P11D form
6. Edit P11D form
7. Submit P11D form
8. View P11d (b) report
9. Troubleshoot issues

Before you start

• The deadline for submitting your P11D form to HMRC is 6th July.
• You must submit the P11D form before the P11D (b). If you submit the P11D(b) first, you won't be able to submit the P11D.

1. Access P11D form

1. Go to Payroll, and select Payroll Settings.
2. Under Pay Run Settings, select Benefit Categories. 
3. Select Processing options.
4. Check the P11Ds check.
5. Select Save.

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2. Add a new benefit category

1. Next to Benefits, select Add.
2. Choose the year.
3. Check the Carry benefit forward box if applicable.
   This will carry this benefit forward to the next tax year during the Year End process.
4. Choose the benefit type. This will reveal additional fields specific to that benefit.
5. Enter the necessary information.
6. Select Save.

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3. Link an employee to a benefit category

1. In the linked employees column, select No linked Employees.
2. Search for the employee you want to link the benefit category to. Repeat this step if needed.
3. Select Save.

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4. Edit the category details for an employee

1. Next to the benefit category, select Linked employees.
2. Select the employee name.
3. Annual cost to you or amount foregone will default to reflect the amount entered when the category was first created, but you can change this is you need to.
4. Amount made good is the annual amount that the employee is contributing toward their benefit. You can add in the whole year amount even if this is being paid by the employee each period.
5. When you're done, select View log.
6. Select Year End.
7. Select Generate P11Ds. This will take you to the P11Ds form within the reports section in QuickBooks.

Next, select the tax year and then Show P11D Forms to see all the benefits that are to be included in the P11D form.

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5. View, download and publish a P11D form

When you publish a P11D form, the linked employee will be able to see it in the employee portal. If needed, you can choose to unpublish the form and notify the employee.

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6. Edit the P11D form

Once you publish the form, you cannot make any changes to it. If you need to edit the form, you must first Unpublish it. Remember to hit Publish again for the changes to show.

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7. Submit your P11D form to HMRC

After preparing and publishing your P11D form, it's time to submit it to HMRC.

Remember, HMRC only accepts one P11D submission per year. if you need to make changes to a submitted form, you'll need to contact HMRC directly.

1. Select the Submit P11D forms. A message will appear asking you to confirm the submission.
2. When you're ready, select Submit.

You can view your submission in the RTI Submission Messages report or download the XML file. QuickBooks will automatically create a P11D (b) report when the form is submitted to HMRC.

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8. View your P11D (b) report

This report shows the value of all cash equivalent benefits which are eligible for Class 1A NI, along with the amount that needs to be paid to HMRC. To view this report:

1. Go to Reports (Take me there).
2. Select HMRC Reporting.
3. Then, select P11D(b) Report.

The value of benefits is calculated based on published P11D forms and any payrolled benefits. If changes are made to the published P11D forms, you must unpublish them for the updated details to show in the report.

To reconcile P11D and P11D (b) totals, you can use the NI Summary report and the Employee Benefits report.

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Troubleshooting issues

If you encounter an error, check the following:

• There may be two names in the first name field. Middle names should be added in the middle name field.
• Make sure the employee's name doesn't use any special symbols. Remove any additional spacing before/after the name.
• The business/company name is over the 35 character limit. You can check this in the Details section of your Payroll settings.

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