Expenses & Benefits

BrightPay allows you to record all types of reportable expenses and benefits that you provide to your employees.

BrightPay can produce a P11D for sending to HMRC after year end which includes your Class 1A NICs declaration and details of the expenses and benefits provided including cash equivalents.

If you have registered for payrolling of benefits by 5 April 2019, BrightPay 2019/20 also supports calculating the PAYE on expenses and benefits in each pay period.

Please note: benefits that cannot be payrolled are:

• Living accommodation 
  
  
• Interest-free and low interest (beneficial) loans
  
  
  

Payrolling Benefits

Tax due on benefits and expenses is collected by adding a notional value to an employee’s taxable pay in payroll, rather than reporting them separately on a P11D.  Tax is deducted or repaid as usual by reference to the employee’s tax code. 

All payrolled benefits and expenses are included in a Full Payment Submission (FPS) as per HMRC's requirement.

The details of payrolled car benefits are included on the FPS. They are included in the first pay period in the tax year that the car is first payrolled. They are re-included in a subsequent submission if any of the car details change (with an “Amended” flag).