Employment & Benefits

Employment, PAYE & Employee Benefits

These forms cover how pay, tax and benefits are reported for employees and directors. The SA102 Employment page is the part of the Self Assessment return where an employee or director reports pay, tax deducted, benefits and expenses from each employment, using figures from the P60 or P45 and the P11D. The P60 is the end-of-year statement of pay and tax that the employer must give each employee by 31 May after the tax year ends, and the P45 is issued when an employee leaves so the new employer can apply the right tax code. The P11D working sheets (WS1 to WS6) help employers work out the taxable value of benefits such as living accommodation, company cars and car fuel (including salary sacrifice cars), vans, interest-free and low interest loans, relocation expenses and mileage allowance payments. The worksheets are not sent to HMRC: their figures go on the P11D, which must reach HMRC with the P11D(b) by 6 July after the tax year ends (6 July 2027 for 2026-27), and Class 1A National Insurance on the benefits is due by 22 July if paid electronically (19 July by post).

SA102 Employment 2026

Purpose

The SA102 is used to report income, benefits and expenses from employment or a directorship in a Self Assessment return. It is needed when an employee has to file a return, for example because of other untaxed income, high income, director status, or because P11D benefits, expenses or close company dividends need to be reported. A separate page is completed for each employment or directorship, because the pay and tax deducted under PAYE need to be matched against the employer's records.

Deadlines

The SA102 is part of the SA100 return, so the filing deadline for the year 6 April 2026 to 5 April 2026 is 31 October 2027 for paper filing and 31 January 2028 for online filing. Any tax due and the first payment on account for 2026-27 must be paid by 31 January 2028. Late returns incur the standard £100 Employees should wait for the P60, which employers must issue by 31 May 2027, and the P11D, which is due to employees by 6 July 2027.

Requirements

The employee needs the P60 or P45 for each employer, the employer's PAYE reference, the P11D or equivalent benefit information, and records of any employment expenses claimed, with receipts. A director also needs details of dividends from close companies and the percentage shareholding. The employee must have registered for Self Assessment and received a notice to file or know that they need to file, and must enter the return figures rounded down for income and rounded up for expenses and tax paid.

Filing Process

Enter your name and UTR at the top. In the first section, enter in box 1 the pay from the employment as shown on the P45 or P60 before tax was taken off, which is the mandatory income figure. Add payrolled benefits that affect student loan repayments (box 1.1), the UK tax taken off the pay in box 1 (box 2) and tips and other payments not on the P60 (box 3). Then enter the employer's PAYE tax reference (box 4) and the employer's name (box 5). Box 6 asks whether you were a director, with the cessation date in box 6.1 if the directorship ended before 6 April 2026. Box 7 asks whether the company was a close company; if yes, give the name, registration number, dividends received and percentage shareholding (boxes 7.1 to 7.4). Box 8 is ticked if the income is from an inside off-payroll working engagement. The benefits section uses figures from the P11D. Share schemes, lump sums, compensation and Seafarers' Earnings Deduction are on the SA101.

P60 End of Year Certificate (2026-27)

Purpose

The P60 is a statement of pay and tax for an employee in a tax year. The employer must give it to each employee who is working for them on 5 April. The employee needs it for a Self Assessment return (SA102), tax credit or Universal Credit claims, and to check tax and National Insurance.

Deadlines

The employer must give the P60 to each employee by 31 May after the tax year ends (31 May 2027 for 2026-27).

Requirements

Payroll records for the year, NI category letters and thresholds, statutory payments, student loan deductions and employer PAYE details.

Filing Process

The employer completes: employee's details (surname, forenames or initials, National Insurance number, works or payroll number); Pay and Income Tax details (pay and tax in previous employments, in this employment (marked with a star), total for the year and final tax code); National Insurance contributions in this employment (NIC table letter, earnings at the Lower Earnings Limit, above the LEL up to the Primary Threshold, above the PT up to the Upper Earnings Limit, and the employee's contributions); statutory payments included in pay (Maternity, Paternity, Shared Parental, Adoption, Parental Bereavement, Neonatal Care); Student Loan and Postgraduate Loan deductions (whole pounds); employer's name, address and PAYE reference; and a message to the employee. The employee should keep the form and use the starred figures for the Employment page, SA102 box 1 (pay) and box 2 (tax), and the National Insurance and loan figures where needed.

P45 Details of Employee Leaving Work (Manual)

Purpose

The P45 is issued by an employer when an employee leaves. It records pay and tax to date in the employment so the new employer can apply the right tax code and the employee does not overpay tax. It has four parts: Part 1 (employer's copy), Part 1A (employee's copy), Part 2 (new employer) and Part 3 (new employee details).

Deadlines

Issue Parts 1A, 2 and 3 when the employee leaves, and include the leaving date in the Full Payment Submission on or before the payment day. Without a P45 the new employer must use a starter checklist and may apply an emergency code.

Requirements

The employee's payroll record, PAYE reference, NINO, tax code, pay and tax to date, student loan status and private address. Employers using payroll software issue P45s electronically.

Filing Process

Parts 1, 1A and 2 use the same boxes: box 1 employer PAYE reference (office number and reference); 2 employee's National Insurance number; 3 title, surname and first names; 4 leaving date; 5 Student Loan deductions (enter Y if a deduction is due); 6 tax code at leaving date (X if week 1 or month 1); 7 last entries on the payroll record (week or month number, total pay to date and total tax to date; only for cumulative codes); 8 this employment pay and tax (leave blank if cumulative and amounts are the same as box 7); 9 works or payroll number and department; 10 gender; 11 date of birth; 12 employee's private address; 13 certification with employer name, address, postcode and date. Enter the leaving date on the Full Payment Submission. Give Parts 1A, 2 and 3 to the employee. Part 3 is completed by the new employer: boxes 1 to 7 carry the previous details; 8 new employer PAYE reference; 9 date employment started; 10 works number; 11 enter P if the employee will not be paid before 5 April; 12 tax code if different; 13 and following confirm the tax figures, the employee's private address (15), gender (16), date of birth (17) and the declaration (18) that a payroll record has been prepared. The new employer reports the start in the first Full Payment Submission. The notes also tell the employee what to do for a new job, Jobseeker's Allowance, claiming tax back (P50), going abroad (P85) or becoming self-employed.

P11D WS1 Living Accommodation 2026-27

Purpose

Worksheet 1 helps an employer work out the taxable value (cash equivalent) of living accommodation provided to a director or employee, for example a flat or house supplied because of the job. The result goes on the P11D. Using the worksheet is optional, but it is a handy way to get the figure right.

Deadlines

These worksheets are not sent to HMRC. The figures feed the P11D, which must reach HMRC, with the P11D(b), by 6 July after the tax year ends (6 July 2027 for 2026-27). A copy of each P11D must also go to the employee by 6 July. Class 1A National Insurance on the benefits is due by 22 July if paid electronically (19 July by post). Keep each completed worksheet for enquiries.

Requirements

Address and dates of occupation, rent paid, annual value (see tax guide 480), purchase and improvement costs, amounts the employee repaid, and details of any heating, furniture or repairs the employer paid for. Employer PAYE reference and employee NINO are needed.

Filing Process

Fill in the employer name and PAYE reference, then the employee's name, works number or department and National Insurance number. Give the accommodation address and say whether it was provided for the full tax year. If not, use only the part of the rent or annual value for the days provided. Section 1 (basic benefit, always completed): box A is the rent payable by the employer or anyone else, B is the annual value of the property, C is the greater of A and B, D is anything the employee paid back to the employer (no more than C), and E is C minus D. E is the basic cash equivalent and goes in section D, box 14 of the online P11D unless there is an additional yearly rent. Section 2 (additional yearly rent, only if the accommodation cost more than £75,000): F is the total cost including improvements, G is the employee's payments towards the cost, H is F minus G, J is the excess over £75,000, K is J multiplied by the official rate of 3.75%, L is K adjusted for part-year days (days divided by 365), M is rent paid by the employee, N is rent already counted in D, P is M minus N, Q is K (or L) minus P, and R is Q plus E. R goes in section D, box 14. Section 3 is a tick list of other benefits linked to the accommodation: heating, lighting, repairs and decoration, furniture, and other items. If the accommodation is part of an optional remuneration arrangement, compare C with the pay given up and use the higher figure less D as the relevant amount.

P11D WS2 Car and Car Fuel Benefit 2026-27

Purpose

Worksheet 2 calculates the taxable benefit of a company car, and free fuel for private use, provided to a director or employee. One sheet is needed per car. Do not use it if the car is provided under an optional remuneration (salary sacrifice) arrangement; use Worksheet 2b instead.

Deadlines

Requirements

Car list price and accessories, registration date, CO2 emissions or engine size, fuel type, dates available, any employee contribution or private-use payments, and whether fuel was provided for private use.

Filing Process

Enter employer and employee details, the make and model, the date first registered, whether it was the only car provided and how many sheets are completed for this employee. Price of the car: box A is the list price (or notional price, or open-market value for a classic car), B is accessories, C is A plus B, D is the employee's capital contribution (maximum £5,000), and E is C minus D, the price used for the charge. Appropriate percentage: write the CO2 figure in F and pick the key letter (F for Euro 6d diesel, D for other diesel, A for all others). For cars registered from 1 January 1998 with a CO2 figure, round it down to the nearest 5g/km (G), add the zero-emission mileage in H for cars of 1 to 50g/km, and use Table 2 to find the percentage for box I (electric cars start at 3%, and the maximum is 37%). Cars without a CO2 figure use engine size in Table 3 (box K), and cars registered before 1998 use Table 4 (box L). Calculation: M is E multiplied by the percentage (I, K or L), the full-year benefit. If the car was unavailable for some days, N is the days unavailable, P is (M x N) / 365 rounded up, and Q is M minus P. R is any payment the employee made for private use, and S is Q minus R. Y goes in section F, box 10 of the P11D.

P11D WS2b Car and Car Fuel Benefit under Optional Remuneration Arrangements 2026-27

Purpose

Worksheet 2b is the same idea as Worksheet 2 but is used when the car is provided under an optional remuneration arrangement, meaning the employee gave up salary to get the car. The taxable amount is the greater of the normal car benefit and the salary given up (the amount foregone).

Deadlines

Requirements

Car price and CO2 details as for Worksheet 2, plus the salary sacrifice agreement showing the amount of pay foregone for the car and for fuel.

Filing Process

Fill in employer and employee details, the car's make and model, first registration date, whether it was the only car and the number of sheets. Section 1 to 2: A is the list price, B is accessories, and C is A plus B (the interim sum). Section 3: D is the CO2 figure and the key letter (F, D or A); E(i) is the CO2 rounded down to 5g/km, E(ii) is the electric range, and Table 2 gives the percentage for F. Cars without a CO2 figure use Table 3 (box G) and pre-1998 cars use Table 4 (box H). Section 4: I is C multiplied by the percentage. If the car was unavailable for any days, J is the days unavailable, K is (I x J) / 365 rounded up and L is I minus K. Section 5: M is the amount foregone for the car for the year. If M is more than L, carry on. AA is the greater of T and Z and goes in section F, box 10 of the P11D.

P11D WS3 Vans Available for Private Use 2026-27

Purpose

Worksheet 3 calculates the taxable benefit when a van is available for private use by a director or employee (or their family). There is no charge if the van is used mainly for business and the only other use is ordinary commuting. Zero-emission (electric) vans have a nil van benefit.

Deadlines

Requirements

Van registration, dates available and unavailable, whether it was shared, any payments made by the employee for private use, and whether fuel was supplied for private use. Vans used only for business and commuting need no entry.

Filing Process

Fill in employer and employee details, the van registration number, whether it was the only van and the number of sheets. Section 1: box A is the standard van charge for the full year, £4,020. Section 2: if the van was unavailable, B, C and D record days unavailable (use C and D for other unavailable periods of at least 30 continuous days), E is the total, F is (A x E) / 365 rounded up, and G is A minus F. Section 3: if the van was shared, H is the percentage reduction (just and reasonable basis, with an explanation), J is G x H rounded up, and K is G minus J. Section 4: L is any payment the employee made for private use, and M is K minus L. M goes in section G, box 9 of the P11D (add all vans together). Section 5 to 7 (van fuel): P is the fuel charge, £769 for the full year. R is extra days after fuel was withdrawn, S is E plus R, T is (P x S) / 365 rounded up, and V is 769 minus T. X goes in section G, box 10 of the P11D.

P11D WS4 Interest-Free and Low Interest Loans 2026-27

Purpose

Worksheet 4 calculates the taxable benefit when an employer lends money to a director or employee (or their relatives) interest-free or at less than HMRC's official rate. It also covers notional loans from buying shares below market value. The result goes on the P11D.

Deadlines

Requirements

Loan agreements, balances on the key dates, dates the loan started and ended, interest paid by the employee, the official rate of interest for 2026-27 (on gov.uk) and details of any salary sacrifice.

Filing Process

Enter employer and employee details. First check the loans table (Loans 1 to 5): record the maximum amount outstanding on each loan during the year and the currency. If the total of all loans never exceeded £10,000 at any time in the year, no worksheet or P11D entry is needed, unless the loan is under an optional remuneration arrangement. Directors of close companies may treat loans in the same currency, non-qualifying and owing at the same time as a single loan. Calculation, per loan: A is the maximum balance on 5 April 2027 or the date the loan was taken out (whichever is later). B is the maximum balance on 5 April 2027 or the date it was discharged (whichever is earlier). C is A plus B, D is C divided by 2, E is the number of complete tax months the loan was owing (6th to 5th), F is D x E / 12, G is the official rate of interest, H is F x G, J is interest actually paid in the year, and K is H minus J. K is the cash equivalent and goes in section H, box 15 of the P11D. For salary sacrifice loans, use the greater of the interest at the official rate and the amount foregone, less interest paid.

P11D WS5 Relocation Expenses Payments and Benefits 2026-27

Purpose

Worksheet 5 calculates the taxable part of relocation expenses and benefits provided to a director or employee who moves for work. Up to £8,000 of qualifying relocation costs per relocation is exempt, so only the excess is reported on the P11D. Bridging loans may also qualify for relief.

Deadlines

Requirements

Receipts for relocation costs (removals, temporary accommodation, travel), amounts paid by the employee, earlier-year expenses for the same move and bridging loan details.

Filing Process

Fill in employer and employee details. Include any items from 2024-25 that were not reported because they were within the exemption. Box A is the gross amount of qualifying expense payments. For benefits, enter the employer's cost (1), less anything the employee paid (2), to give B. Box C is the cost of qualifying living accommodation. Box D is the total (A + B + C). Exempt amount: box 3 is the exempt limit (up to £8,000), box 4 is the qualifying expenses and benefits from 2024-25 for the same relocation, and E is 3 minus 4 (enter NIL if 4 is more than 3). F is D minus E (enter NIL if E is more than D). This is usually clear only once the move is complete, so employees can ask HMRC to calculate the relief.

P11D WS6 Mileage Allowance Payments 2026-27

Purpose

Worksheet 6 works out how much of the mileage allowance paid to an employee using their own vehicle for business travel is taxable. Payments up to the HMRC approved rates are tax-free; only any excess is reported on the P11D. Employees may be able to claim tax relief if the employer pays less than the approved rate.

Deadlines

Requirements

Mileage records by vehicle type, total allowance paid, any tax already deducted via payroll and the approved mileage rates.

Filing Process

Fill in employer and employee details. Section 1: A is the total mileage allowance paid in 2026-27, B is any amount already taxed through payroll, and C is A minus B. Section 2: tick the vehicle type (car or van, motorcycle or cycle; use a separate sheet for each type) and enter D, the total business miles travelled. Section 3 gives approved rates: cars and vans pay 45p for the first 10,000 business miles and 25p after that; motorcycles 24p and cycles 20p. Section 4: enter the rates in boxes 1 and 2. E is the first 10,000 miles (or D if lower), F is E x box 1, G is the miles over 10,000, H is G x box 2, and J is F plus H, the maximum tax-free amount. Compare C and J: if J is the same or more, the whole amount is tax-free and K is zero. If J is less than C, K is C minus J. No entry is needed if the total is zero.