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 5 April 2022 for the tax year 2022/2023.
- 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.
Once you're registered for payrolling benefits, you need to provide a letter to your employees letting them know what it means for them. You must give your employees the following information before 1 June after the end of each tax year:
- Details of the benefits you've payrolled, for example, car fuel.
- The cash equivalent of each benefit that you've payrolled.
- The relevant amount you've payrolled for optional remuneration (OpRA).
- Details of benefits you haven't payrolled.
You can give this information on your employees' payslips or in a separate note or statement. It should be clear to employees:
- What benefits have been subject to tax.
- How much of the value of each benefit you've collected and reported tax on.
If your employees fill in a Self Assessment tax return, they'll need this information so they can inform HMRC.
Want to buy Sage 50 P11D?
Sage 50 P11D includes the legislation for the 2022/2023 tax year and ensures the information you submit to HMRC is secure and accurate.