Rather than report benefits on a P11D at the end of the year, you can instead use Payrolling of Benefits in Kind (PBIK).

You must have registered with HMRC to do this before the start of the tax year.

When approving an employee expense

  1. Go to HR

  2. Select Expenses

  3. Select the expense and benefit to approve by clicking on Accept

  4. Click on the dropdown menu

  5. Select PAYE

Manually from an employee profile

  1. Go to My employees

  2. Select your employee by clicking on View

  3. Scroll down to Benefits

  4. Click on Add new benefit

  5. Select the tax year

  6. Provide a title to identify the expense or benefit easily

  7. Select the type of benefit

  8. Select NEXT

An additional line will appear on the on-screen payslip showing the value of the Benefit. Tax will be calculated on pay as usual, adding the value of the Benefit.

Whilst the Benefit increases the taxable pay, it doesn't add anything to the employee's take-home pay and isn't visible on the payslip PDF.

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