NOTE: You are viewing documentation for a previous tax year version of BrightPay. Click here to view the documentation for the current 2021/22 tax year version.

Expenses & Benefits - Overview

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


BrightPay can also produce an Expenses and Benefits submission (EXB) to send to HMRC after year end which includes your Class 1A NICs declaration (P11D(b)) and the P11D employee details for any expenses and benefits provided.

If you have registered for payrolling of benefits by 5 April 2020, BrightPay 2020/21 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).

P11D's are not required where benefits have been payrolled, however a P11D(b) declaration must still be submitted to HMRC at the end of the tax year. This declaration can be submitted using BrightPay.




Need help? Support is available at 0345 9390019 or

BrightPay Licence Terms and ConditionsCoronavirus (Covid-19) - Guidance for BrightPay usersImportant Information for Mac UsersBureau Enhancements - Useful Functionality for Bureau Licence HoldersInstalling BrightPayOrdering for The New Tax YearImporting From The Previous Tax YearMoving to BrightPay from another payroll softwareEmployer DetailsEmployee DetailsCoding NoticesPayroll CalendarProcessing PayrollImporting Pay Data using CSV FileRTICommon HMRC Error MessagesAnalysisPayroll JournalsHMRC PaymentsMaking Corrections to PayrollScheduling Future PaymentsSwitching an Employee's Pay FrequencyDirectorsStartersLeaversStudent Loan DeductionsPostgraduate Loan DeductionsStatutory PaymentsAttachment of EarningsExpenses & BenefitsPensions (outside of Automatic Enrolment)Payroll GivingYear EndRates & Thresholds at a GlanceTaxNational InsuranceNational Minimum/Living WageMileage Allowance Payments (MAPs)Employment AllowanceApprenticeship LevyTermination Awards & Sporting TestimonialsOff-Payroll Working in the Public SectorGender Pay Gap ReportingLeave Reporting & Employee CalendarAnnual LeavePayslip TranslationsBacking Up/Restoring Your PayrollConstruction Industry Scheme (CIS)Automatic EnrolmentBrightPay ConnectGDPR