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Expenses and benefits

If you pay expenses or benefits to your staff or directors you will need to tell HMRC and pay tax and National Insurance (NI) on them.

Benefits include:employeebenefits_header1

  • Health insurance
  • Company cars
  • Travel and entertainment expenses
  • Childcare

Here’s a full list of expenses and benefits.

At the end of the tax year you’ll need to send an end-of-year form to HM Revenue and Customs (HMRC) for each employee that has been provided with expenses or benefits.

The form will either be a P9D or a P11D, depending on how much the employee earns.

You can submit a report via payroll software, HMRC’s PAYE online service or via HMRC’s expenses and benefits online form.

You can also download the forms and send them to your HMRC office:

P11D

P9D for employees earning less than £8,500.

P11D (b) to report Class 1A NI contributions due on expenses and benefits

More information is available from PAYE end of year expenses and benefits