Designed to give delegates clarity and confidence about how to process the P11D, P11Db forms, PAYE Settlement Agreements (PSA) and net to gross calculations.

Please note: Materials for this course will be made available via an online platform, however a selection of this materials will need to be printed off and brought with you on the day. Login details for the online platform will be sent to you 10 days before the course start date. If you have any problems or questions, please email admin@cipp.org.uk.


Why you should attend

Benefits-in-kind are increasingly awarded by employers to staff as part of a comprehensive total reward package. Ensuring these items are reported correctly to HMRC can be complex, with a myriad of rules to follow.

This course is designed for those in payroll or finance who are responsible for administering expenses and benefits provided to employees.

The course aims to help delegates negotiate the complex tax and NICs rules for a range of expenses, benefits in kind and the rules around travel and subsistence. In addition, you are provided guidance on how to calculate and report the values of these benefits on form P11D and Class 1A NICs on form P11Db.

Also included with the course are the principles of grossing up, settling tax and NIC on benefits provided to employees/third parties via Taxed Award Schemes, or a PAYE Settlement Agreement.

The course is suitable for delegates that have the following suggested roles:

  • Payroll administrators
  • Payroll co-ordinators
  • Payroll supervisors
  • Payroll Managers
  • Finance Managers
  • Reward Managers

And you may be working in either:

  • A payroll bureau
  • Accountancy firm
  • In-house payroll team
 

What you will learn

To provide a detailed overview on the range of reportable benefits in kind and employee expenses, along with trainer-led instruction on accurately completing forms P11D and P11Db to ensure that you can comply with the relevant legislative requirements.

  • Calculate the taxable value of various benefits
  • Calculate Class 1A NICs accurately
  • Complete forms P11D and P11Db correctly and on time
  • Review the employer's expenses and benefits system

Course content

  • Outline of expenses and benefits
    • Defining benefits & expenses for income tax and NIC purposes
    • Distinguishing between market values, money’s worth and marginal costs.  
    • Identifying the benefits exempt from tax and NICs
  • Identifying the different returns for expenses and benefits
    • Outlining the structure and purpose of form P11D
    • Summarising the purpose of form P11Db
  • Identifying the various schemes with which benefits are offered
    • Outlining salary sacrifice schemes
    • Identifying Optional Remuneration Arrangements
    • Summarising the mechanics of payrolling of benefits
  • Calculate grossing up correctly
    • Identifying circumstances when grossing up is required
    • Calculating tax and NICs due to the net to gross figures
    • Administering correctly payments made outside of the payroll
  • Summarise the purpose of PAYE Settlement Agreements (PSAs)
    • Distinguishing between PSAs and Taxed Award Schemes (TASs)
    • Administering PSA schemes correctly
    • Calculating the tax and Class 1B NICs due from PSAs
  • Demonstrate form P11D completion
    • Illustrating examples of asset transfers
    • Calculating living accommodation benefit
    • Calculating the company car and fuel benefits
    • Identifying private medical treatment or insurance
    • Listing qualifying relocation expenses
    • Calculating the tax and NICs due from beneficial loans
  • Identifying the record-keeping requirements for benefits and expenses
    • Listing the expenses & benefits of record-keeping requirements 
    • Discussing the optimal expenses and benefits policy for employers
  • Summarising the principles of travel and subsistence expenses
    • Identifying qualifying travel expenses
    • Defining ordinary commuting and private travel
    • Distinguishing between permanent and temporary workplaces


 

Prior learning required

This course is not designed for those new to payroll. You need to have a working/operational knowledge in either a payroll or HR capacity, ideally (though not essentially) at supervisor level or above.

 

You may have already studied the following courses too:

 

Introduction to PAYE & NIC’s

A working knowledge of PAYE & NICs is the central skillset that all payrollers must master. This course covers in-depth the rules for calculating both statutory deductions as well as the principles of processing starters and leavers correctly. Delegates leave the course with the ability to calculate gross to net pay manually.

 

Introduction to Statutory Payments

Covering in detail the core statutory payments as well as introducing Shared Parental Leave & Pay, completing this course will complete a payroll administrator’s essential skill set.

 

Essential Additions to Payroll Basics

This course directly follows from this syllabus to cover a broad range of other subjects which all payroll administrators must competently grasp such as Student Loan Deductions, Court Orders, Auto-Enrolment, Real-Time Information, Year-End obligations and an introduction to Director’s NIC’s.

Continuing your learning

Payrolling benefits and legislation update:
The option to process benefits-in-kind through the payroll is becoming increasingly popular with employers. 
This course serves as a useful ‘bolt-on’ to the P11D, Expenses & Benefits course, providing delegates with the opportunity to understand the mechanics of payrolling benefits, as well as providing further insight into the changes to salary sacrifice arrangements with the introduction of Optional Remuneration Arrangements (OpRAs).

Salary sacrifice and OpRA: 
Benefits are often offered through either a salary sacrifice scheme or flexible benefits package. This course explains the legal and payroll related implications of salary sacrifice schemes and other optional remuneration arrangements. Using examples, it examines what makes a successful salary sacrifice arrangement, covers the payroll processing and reporting implications, and highlights the potential impact on state benefits.