Learn how to create, edit and submit a P11D form in QuickBooks Online Advanced Payroll.
|Important: HMRC will only accept one P11D and one P11D(b) submission a year. This means that any changes that need to be made to the form after it has been successfully submitted through QuickBooks will need to be done directly with HMRC.|
P11D forms explained
What is a P11D form?
A P11D form is an end-of-year submission that employers need to make to HMRC on 6 July following the end of the tax year. The P11D form is used to report benefits in kind, also known as non-cash benefits, which employees receive from a company in addition to their salary.
Put simply, any items that the company pays for and the employee benefits from must be reported to HMRC on the P11D form. Common examples of these benefits are:
- Company cars
- Private health insurance
- Loans for rail season tickets
Who needs to complete and submit a P11D form?
It is the employer’s responsibility to file the PD11 form to HMRC on behalf of the employee.
When is a P11D return due?
The PD11 form must be submitted to HMRC by 6 July following the end of the tax year.
1. To access the P11D in QuickBooks
- In QuickBooks, go to Payroll and then Payroll Settings.
- Under Pay Run Settings, select Benefit Categories.
- Tick the box to show the P11D report form.
- Select Save.
2. Create a new benefit category
- Year - this is when the benefit was active from.
- Carry benefit forward - any benefit categories with this box ticked can be duplicated for the next year as part of the year-end process.
- Benefit type - choose the type of benefit from the drop down list. This will then show the following fields relating to that benefit type:
- NI treatment - this defaults to the NI (National Insurance) treatment for the selected benefit type.
- Name - enter the name of the benefit (for example, company car).
- Annual cost to you or amount foregone - enter 0 if the amount differs for employees within the business or add a fixed amount for each employee the benefit applies to. You can edit this later when you add and link employees to the benefit – which we’ll show you how to do in Step 3.
- Payrolling benefit - leave this unticked.
- Click Save.
3. Add and link employees to the benefit category
- Under the Linked employee column, click No linked employees.
- Search and select the employee(s) you wish to link the benefit category to.
- Once you are happy with the employee list, press Save.
4. Edit category details for employees
- Select Linked employees and choose the employee you wish to edit from the benefit category list.
- Annual cost to you or amount foregone - this will default to reflect the amount entered when the category was first created, but you can change this if needed.
- Amount made good - add in any annual amount made good from the employee (this is an amount the employee is contributing towards their benefit), add in the whole year value even if this is being paid by the employee each period.
- Once you have finished editing, click View log.
- Click Year End.
- Select Generate P11Ds. This will take you to the P11Ds form within the reports section in QuickBooks.
Next, select the tax year and click Show P11D Forms to see all the benefits that are to be included in the P11D form.
5. View, download and publish P11D form
- Go to Reports.
- In the Payroll HMRC Reports section, select P11D Forms.
- Click Action on the P11D form you wish to view, download or publish.
If you Publish a P11D form it will be visible for the employee it is linked to in the portal. Once published, you will also have the option to unpublish the form and send a notification to the employee.
6. Edit P11D form
You will not be able to make changes to published P11D forms. If you need to edit the employee or benefit amount on the form, simply Unpublish the form you wish to edit and republish it in order for the new updates to show.
7. Submit P11D form to HMRC
Now that your published P11D form is ready, it’s time to submit it to HMRC.
Note: Because HMRC only accepts one P11D submission a year, any changes that need to be made to a P11D form that has been successfully submitted in QuickBooks will need to be done directly with HMRC.
- Click the Submit P11D forms button and a message will appear asking you to confirm the submission.
- Once you are happy with everything, click Submit.
You can view the submission in the RTI Submission Messages report or download the XML file.
When all P11D forms have been published and submitted to HMRC, QuickBooks will automatically create P11D(b) reports.
8. View P11D(b) reports
A P11D(b) report shows the value of all the cash equivalent benefits which is eligible for Class 1A NI and the amount that needs to be paid to HMRC for the selected tax year.
To view this in QuickBooks go to Reports, select HMRC Reporting and then P11D(b) Report.
Note: This value is based on the P11Ds and payrolled benefits for the selected tax year. The value of all the benefits is also based on the published P11Ds and any payrolled benefits, which means if changes were made to published P11Ds you will need to unpublish and republish them for the updated details to show in the P11D(b) report.
You can also use the NI Summary report and the Employee Benefits Report to reconcile both P11D and P11D(b) totals.