Welcome to the much-anticipated benefits season! As we embark on this annual journey, our goal is to give you the tools and knowledge needed to seamlessly navigate the process of inputting your benefits and submitting your P11D's through PayFit. To guide you through this period, we've organized some essential insights into key checklist items that deserve your attention as we approach the benefits submissions deadline.
If you’re payrolling your benefits:
Request your benefit statements early from your benefit provider for the tax year April 2023 to March 2024. For each benefit you provide, you should receive a statement showing the employer cost of the benefit and, in some cases, the employee’s own contribution or towards dependents.
Example: You may need to ask Vitality for a breakdown of premiums per employee, including the total employer cost, and any contributions made by the employee.
Please ensure you have checked and reconciled all benefits provided to employees against the statement before you run your March 2024 payroll. This is your final opportunity to verify accuracy or make corrections since the values will need to be included in the correct tax year, in line with HMRC guidance. Any payrolled benefits will be included in the employee’s taxable income to increase the tax due, so it is extremely important for the correct information to be reported, as the employees are paying the equivalent tax in real time.
Make sure all employee and dependent deductions have been processed for all benefit schemes as their contributions are deducted directly from their pay before you run your March payroll
In April or May, reactivate leavers who received benefits during the tax year, even if you added their benefit information while they were still active. The option to reactivate leavers will be in the 'By May Payroll' checklist on PayFit and will be available after you have closed your March Payroll. Once your leavers have been added or re-activated, their status will change to ‘P11D only’ which means they won't be included in RTI submissions or bank files.
Review and submit the benefits information for your current employees and leavers before the May 2024 payroll run.
Read our Preparing to Submit your company benefits article to understand your monthly deadlines
If your benefits are P11D only:
Request your benefit statements early from your benefit provider for the tax year April 2023 to March 2024. For each benefit you provide, you should receive a statement showing the employer contribution towards the benefit and, in some cases, the employee’s own contribution or towards dependents.
Example: You may need to ask Vitality for a breakdown of premiums per employee, including the total employer cost, and any contributions made by the employee.
Enter company cars, assets transferred, loans, vouchers or credit cards into the app before closing March payroll for active employees. Only PMI schemes and gym memberships can be adjusted after your March payroll.
Make sure all employee and dependent deductions have been processed for all benefit schemes as their contributions are deducted directly from their pay before you run your March payroll.
In April or May, reactivate leavers who received benefits during the tax year, even if you added their benefit information while they were still active. The option to reactivate leavers will be in the 'By May Payroll' checklist on PayFit and will be available after you have closed your March Payroll. Once your leavers have been added or re-activated, their status will change to ‘P11D only’ which means they won't be included in RTI submissions or bank files.
Review the benefits information for your current employees and leavers, and confirm your benefits are ready to be submitted.
Once you run payroll, PayFit will generate P11Ds for all your employees. Your P11Ds and P11D(b) will be submitted to HMRC by 6 July. You will be able to check the status of your submission on the app.
Read our Preparing to Submit your company benefits article to understand your monthly deadlines