If you payroll benefits or submit P11Ds at the end of the year, you need to calculate the Class 1A national insurance liability on the cash equivalent of the benefit, pay this to HMRC and submit a P11D(b).
The P11D(b) submission window is the tax year following the one you’re submitting for. HMRC still accept submissions after 6 July but considers these late.
To do this, follow the steps below.
Create a submission
Note: You can't do this for any company that you've switched either the payroll module or RTI submissions off.
Click Settings then, under Payroll settings, click P11D(b) submissions.
Click New submission.
From the drop-down menu, select the relevant tax year.
Note: You can only select a tax year you've run the final submission of the year for.
If you have multiple companies under the same PAYE scheme, check whether you've already made a submission in that tax year.
If you haven't made a submission in that tax year, follow the steps below:
Note: If you have already made a submission for that tax year and need to make corrections, you need to do this via a paper P11D(b).
Select the I have checked other companies on this PAYE scheme check box.
Click Next then, if required, amend the company name.
Check the Accounts and Tax Office reference numbers are correct.
Click Next.
Enter the benefits liable to Class 1A NICs
In the Total benefits liable to Class 1A NICs field, enter the relevant amount.
If required, select the Adjust the above figure check box and make your changes.
In the Amounts not included in ‘Total benefits’ on which Class 1A NICs are due field, enter the relevant amount.
In the Amounts included in ‘Total benefits’ on which Class 1A NICs are not due field, enter the relevant amount.
Enter a description for each adjustment then click Next.
If the adjustment value is 0, enter N/A for the description.
Generate and view the draft report
To view the draft, click P11D(b) Report. This report includes a summary of the figures and the amount of Class 1A NIC payable, based on the total benefits on which NICs are due and the NICs rate.
If you need to download a copy of this, click Save and print.
If you need to pause the P11D(b) submission and come back to it later, click Finish later. This saves a draft version of the submission to the P11D(b) submissions area. Alternatively, if you’re ready to continue with the submission, click Next.
Review and submit the data
Before you submit the P11D(b), you can review a summary of the figures.
If you need to edit the submission, click Back and make your changes.
Once you’re happy with the figures, to send the P11D(b) file to HMRC, select the Confirm declaration check box and click Submit.