The P11D Organiser is designed to replicate the payment process that organisations perform for reimbursing business travel. As a result, the system requires the user to set up “Mileage Schemes” to reflect the respective pence per mile rate that an organisation reimburses to its employee to determine any Benefit In Kind each employee had during that tax year and report this on the P11D.
There are occasions when the number of mileage schemes being operated within an organisation runs to more than the 10 schemes accommodated by the system, which is particularly prevalent in public sector bodies.
As a result, we have designed a simplified method which is now the recommended approach for ALL ORGANISATIONS with reportable mileage payments.
This method removes the need to replicate the mileage schemes and calculations already made elsewhere, but simply state what has already been paid to that individual and the number of miles (cumulatively across all schemes) and implement a simplistic mileage scheme in the Organiser to receive this information.
There are special provisions made to deal with passenger payments and you should exclude this additional value from your standard mileage data extract. More information on Passenger Payments can be found towards at end of this document.
Data Extract from payment system
The following extracts are required from Payroll or any other payments system holding the information following the end of the tax year:
- Person ID (e.g. Payroll Number and/or NI Number)
- Business Miles covered and Mileage payment made for those miles (excluding passenger payments) - this can be year to date totals or at a payment/transaction level (should you choose).
- Round Sum Allowance (“Lump Sum”) payments made (if any)
- Passenger payments made and Total Passenger Miles (if any)
Setup a Vehicle in P11D Organiser
To accommodate the importing of the extracted mileage information, a vehicle record needs to be created as all mileage records are associated with the vehicle used to perform the journey(s). It is suggested for simplicity to enter this record with a Vehicle Registration Number of simply “Mileage”. If you have the additional need to accommodate Round Sum Allowance/Lump Sum payments, then create a second vehicle record and enter this record with a Vehicle Registration Number of “LumpSum”
To create these, you can either import the cars by creating an import file like this.
Please refer to the relevant importing guide for Section E
Importing Business Mileage
Once the Vehicle and Mileage Schemes have been set up, these can be used in extending the data extracted from the originating payment system to prepare the mileage file ready for import.
Sample extract from payment system
|NINO||PAYROLL||FROM||TO||PAYMENT||ANNUAL BUSINESS MILES|
Extended with Vehicle Registration and Mileage Rate Scheme number ready for importing for a private car (use real registration when referring to a company car)
|NINO||PAYROLL||FROM||TO||PAYMENT||ANNUAL BUSINESS MILES||MILRESRATE||R_NUMBER|
Importing Round Sum Allowance/Lump Sum Payments
The process for this is the same as mileage except the number of miles is set as Zero and the Vehicle used is with a Registration Number of “LumpSum”, set up previously.
|NINO||PAYROLL||R_NUMBER||FROM||TO||PAYMENT||ANNUAL BUSINESS MILES||MILESRATE|
Passenger Payments – Consideration and Data Preparation
If you pay above HMRC rates for this particular element and if these supplements are rolled in to the mileage payments, the AMAP calculations will be incorrect, so by excluding these values and putting the passenger payments into section M (when required) to report any profit on those specific payments, we can ensure that the right Benefit In Kind is reported.
Currently, HRMC allows a supplementary element of up to 5 pence tax free for each additional passenger carried during a business journey. If the additional payment made by an employer is less than this value, you can simply ignore this element altogether. In the event that the payment is in excess of this allowance then there is a requirement to prepare a return for this.
An import file for loading into Section M may consist of the following elements:
|Date Fields table|
|Value of benefit||CASHEQV||Numeric||10||Compulsory|
|Description of benefit||DESCRIPTIO||Character||50||Compulsory|
|Amount made good||MADEGOOD||Numeric||10||Optional|
In the illustration below, the first four columns can be used as an import file - the additional columns are to illustrate the rates and miles used to determine the import values.
|PAYROLL||DESCRIPTIO||CASHEQV||MADEGOOD||Passenger Miles||Passenger Mlg Rate||HMRC Allowance||No of Passengers|
Manually Entering Business Mileage
Once you have selected any person from within the company go to Section E (from the Sections list highlighted)
Make sure you are in Section E (check form title) then click Add
Select a "Mileage allowance rate" from the Description list and fill in the boxes then click SAVE
Add a mileage payment (e.g. £1 or £0) to Allowance Rate 0 and click SAVE to save.
Once you have saved this, the car will be saved and the mileage payment will be complete for that individual. Simply delete the mileage payment that will already be highlighted – this will remove the taxable entry but it will leave the car in the system to be used later.
Repeat for a car with a registration number of "LumpSum" if required.