Payrolling of Benefits-in-Kind 2024-25, and P11D 2023-24

Benefits Processed in Payroll 2024-25

As part of the legislative changes for benefits processed in payroll for the year 2024-25, the following apply to the tax year starting 06 April 2024, and remain unchanged from the previous tax year:

  • Cars with Approved CO2 Emissions figure
  • Cars without Approved CO2 Emissions figure
  • Cars registered before 1 January 1998
  • Car fuel benefit - remains at £27,800
  • Van benefit - remains at £3,960
  • Van fuel benefit - remains at £757
    • Zero emission vans have fuel benefit remains set to 0 where the van benefit is 0

The calculation of reduction for unavailability will use 365 as the number of days in the tax year as 2025 is not a leap year.

P11D Expenses and Benefits Statement and Working Sheets 2023-24

Leap Year - The calculation of reduction for unavailability will use 366 as the number of days in the tax year as 2024 is a leap year.

Templates - The templates have been revised to reflect the changes to tax year references for the Expenses and  Benefits statements as well as all working sheets:

  • Expenses and Benefits Statement - no longer accepted in paper format by HMRC therefore:
    • The text has been changed to reflect a more appropriate text in the Employers section 
    • The return address for HMRC has also been removed
    • Software vendors will no longer be required to conform to the layout of the P11D Expenses and Benefits statement, however the format in Fusion HCM Payroll has been retained with the above minor changes only
  • Working Sheet 1
    • Official rate of interest on 6 April for Living Accommodation is set at 2.25%.
  • Working Sheet 2
    • Cars with approved Co2 emissions remains unchanged
    • Cars without approved Co2 emissions remains unchanged
    • Car fuel benefit increased to £27,800
    • Cars registered before 1 January 1998 percentage to be applied remains unchanged
  • Working Sheet 3
    • Vans and Van fuel benefit
      • Standard van benefit available for private use is now £3,960
      • Benefit for zero emissions vans is set at 0
      • Vans not capable of producing CO2 emissions is currently nil
      • Van fuel benefit multiplier is greater of £757 and the foregone amount of the fuel
      • Zero emission vans have fuel benefit set to 0 where the benefit is 0
  • Working Sheet 4
    • Average official rate of interest - Interest free & low interest loans set to 2.25% for calculation of taxable benefit value

Employee Title Validation

The validation on the employee title is more restrictive than that of RTI. As a result, if the title doesn't meet the P11D HMRC validation, the validation rules will exclude the title from the XML file to allow the submission of P11D/P11D(b) without failing.

XML File Changes

XML output file created for submission has been changed to reflect all the 2023-24 headers and relevant records, as required.

P11D(b) 2023-24

The rates used in the calculation if Class 1A NI is set to the same value as the rate for secondary (Employers) Class 1 NI (at 13.8%) for the tax year 2023-24.

Provide accurate taxable amounts during the year 2024-25 to your employees who have benefits-in-kind processed through payroll. The applicable rates, benefit costs, and other related amounts that will apply from April 2024 are included.

Steps to Enable

You don't need to do anything to enable this feature.

Key Resources

For complete details on the Legislative updates and CO2 emission percentages, see Payroll Legislative Updates For Tax Year 2024/2025.