The purpose of this Wiki is to understand the criteria used to generate the P11D forms.
To know more about this behavior, we must first review the necessary information, and then know how to reproduce it. After reading this article you will be able to identify the whole concept.
Obtaining the necessary information:
- The P11D reports check all the benefits (e.g. loans or cars) and then the total gross (/101) and the summation of above two is checked against the threshold £8500 for the P11D generation.
Here the limit set in T511K (MOLGA "08" KONST"TXBLL").
The check is done on total gross pay(/101) and NOT /121,taxablePay.
- Incase of mid-month hiring, no of days are taken from hiring in the current tax year and hence the limit 8500 GBP is prorated accordingly.
- When completing form P11D (but not P9D) you must also report:
#any sums the employee has given you to make good the cost of expenses or benefits you've provided,
#any tax you've deducted through your payroll on the value of the expenses or benefits.
If there are benefits which are taxed in the payroll i.e. made good, then irrespective of the limit, the P11D will be generated.
If the EE has had any benefits taxed in the payroll (i.e. made good), then these have to be reported, so a P11D is always reported in this case.
- When a second loan is granted and there is an outstanding balance from an existing loan, then the final balance of both loans at the end of the period should be used to decide
if the balance is above £5000 and relevant for P11d reporting.