Overview of Taxable Benefits for the UK
The Taxable Benefits card stores the employee’s situation related to all benefits as part of their employment contracts, which are subjected to tax and national insurance.
The benefits provided to the employees can be processed through payroll or by P11D reporting. The employers can choose if they reports benefits using P11D or process them through payroll.
You can have a combination of the different types of benefit, either of P11D reporting or processing through payroll, provided the benefit type can be processed by payroll. Currently, HMRC regulations allow two benefit types to be reported only through P11D.
There may be instances where mass upload is required for the Taxable Benefits card:
During data migration:
- Employee benefits must be uploaded to ensure that all relevant information about Taxable Benefits is migrated from your legacy system.
Ongoing bulk updates:
- Bulk load of P11D data – Mass upload of P11D data can be done as part of the year-end processes to load employee benefits.
It is recommended to have a good understanding of the Taxable Benefits card and the information it contains prior to attempting mass upload. For further information, see Oracle Fusion HCM (United Kingdom): Processing Benefits-in-Kind and P11D Reporting (Doc ID 2393233.1)
Considerations and Prerequisites
The taxable benefits elements as well as the calculation card components for each of the taxable benefits are predefined. However you must create the element eligibility before the Taxable Benefit components are created for the employee.
| Element Name | Create Eligibility |
|---|---|
| Assets Transferred Processor | Yes |
| Assets Transferred Result | |
| Payments Made On Behalf Of Employee Processor | Yes |
| Payments Made On Behalf Of Employee Result | |
| Vouchers and Credit Cards Processor | Yes |
| Vouchers and Credit Cards Result | |
| Mileage Allowance And Passenger Payments Processor | Yes |
| Mileage Allowance And Passenger Payments Calculator | |
| Mileage Allowance And Passenger Payments Result | |
| Car And Car Fuel Processor | Yes |
| Car and Car Fuel Calculator | |
| Car and Car Fuel Result | |
| Private Medical Treatment Or Insurance Processor | Yes |
| Private Medical Treatment Or Insurance Result | |
| Qualifying Relocation Expenses Processor | Yes |
| Qualifying Relocation Expenses Calculator | |
| Qualifying Relocation Expenses Result | |
| Service Supplied Processor | Yes |
| Service Supplied Result | |
| Assets Placed At Employees Disposal Processor | Yes |
| Assets Placed At Employee Disposal Result | |
| Other Items Processor | Yes |
| Other Items Result | |
| Expenses Payments Processor | Yes |
| Expenses Payments Result |
All ‘Processor’ elements delivered require an eligibility created before it can be used.
Taxable Benefits Card Record Types
The Taxable Benefits card is uploaded with HCM Data Loader using the Global Payroll Calculation Card business object. This generic object hierarchy provides record types to support the various country-specific requirements. UK Taxable Benefits utilizes the following record types:
| Component | Functional Description | File Discriminator |
|---|---|---|
| Calculation Card | Defines the calculation card type and the employee assignment that it captures information for. | CalculationCard |
| Card Component | Used to group and segregate data required by the calculation card. The following sections describe the card components applicable to this calculation card and the child records that are required for each card component. | CardComponent |
| Component Detail | Provide a component detail record for each flexfield context required by each card component. | ComponentDetail |
| Card Association | Associates the calculation card with the Tax Reporting Unit the employee reports to. | CardAssociation |
| Card Association Detail | Associates card components with the employee’s assignments. | CardAssociationDetails |
Taxable Benefits Calculation Card Hierarchy
The Taxable Benefits calculation card supports several card components, though the typical Taxable Benefits card is likely to have just a few.
The generic shape of the Taxable Benefits calculation card is described in this diagram:
Some card components have multiple component details and child card components. Each top=level card component must be associated with the employee’s assignments.
The shape that applies to each card component is described in the example topics within this section.