In this section:
Completing form P11: introduction
As an employer you're required to keep records of pay, tax and National Insurance (NI). For each employee that you make a payment to during the tax year you have to prepare and maintain a form P11 Deductions Working Sheet - or equivalent record - if their earnings are above a certain level or if you're required to operate a tax code for them.
The easiest and most convenient method for keeping these records and working out pay and deductions is to use commercial payroll software or our free P11 Calculator on the Employer CD-Rom. These do most or all of the calculations you need automatically. Or you can use a paper version of form P11 that you can download from our website.
On this page:
- When and why you complete a P11 or equivalent
- Information you'll need to set up the P11
- Electronic options for completing form P11 (recommended)
- Benefits of using payroll software
- Completing form P11 using paper methods
- Record keeping if you're not required to complete a form P11
- What about taxable expenses and benefits?
- More useful links
When and why you complete a P11 or equivalent
By law you have to keep records of all payments to and deductions from your employees. For each employee you must record:
- their gross pay (before tax)
- their National Insurance contributions (NICs)
- the amount of tax deducted under PAYE (Pay As You Earn)
- the amount of any student loan deduction
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay (SPP)
- Statutory Adoption Pay (SAP)
You must record this information on a separate form P11 for each employee if any of the following apply:
- You pay an employee an amount that's equal to or above the Lower Earnings Limit (LEL). For the tax year 2008-09 the LEL is £90 in any week or at least £390 in any month.
- We've issued you with a tax code for your employee.
- You're required to operate a tax code taken from your employee's form P45.
- You're required to operate tax code BR (Basic Rate tax) for an employee. This may be because the form P46 wasn't completed in time for the employee's first pay day, or because box C on their P46 was ticked.
The details you enter on the P11 or equivalent are used to work out
how much you need to pay to us each month or quarter for PAYE tax, NICs
and student loan deductions. (In certain circumstances your P11 calculations
may require a tax refund to an employee for a month or quarter. For
details of the procedures to follow, use the link below.)
The P11 figures also provide the information that you'll need at the
end of the year to complete forms P14 End of Year Summary and form P35
Employer Annual Return.
If you don't need to fill in form P11 for an employee - for example because they don't earn enough - you'll still need to keep a record of the employee's name and address and the payments you make to them for each pay period.
Taking on a new employee - learn more
Obtain or view example form P11 (PDF 232K)
Dealing with employee tax refunds
Information you'll need to set up the P11
You'll need the following to set up and complete form P11 or equivalent software.
Employer and employee details
You'll need:
- the name of your HM Revenue & Customs (HMRC) office
- your employer PAYE reference
- employee start date
- your employee's first two forenames and surname
- your employee's NI number
- your employee's date of birth
- your employee's works or payroll number, if applicable
- your employee's tax code (from P45/P46)
- whether the employee has a student loan
To find out what to do if your employee doesn't have an NI number or tax code read our guide 'Taking on a new employee'.
If you're a new employer and are required to complete a form P11 for an employee, you'll need to register with us for PAYE. Read our guide 'Register as an employer' to find out more.
Electronic options for completing form P11 (recommended)
Depending on your choice of payroll system, you can use software or complete a paper version of form P11. Using software will save you time and help reduce error.
Commercial software
There are many software packages available that offer a full payroll service, including the production of payslips and so on. Once you've input the employee's details these packages will automatically work out all your deductions and amounts to pay. They also allow seamless online filing of returns. Find out more by reading our related guidance on choosing a payroll system.
Find out about choosing a payroll system
HMRC P11 Calculator
Our free P11 Calculator that's available on the Employer CD-Rom isn't a full payroll software system but it's more than a simple calculator. You can use it in conjunction with our Statutory Payment Calculators to keep a running total of your employees' pay and deductions. It also comes with updates that adjust your figures to take account of changes to tax codes.
From April 2008 - provided certain conditions are met - employers with nine or fewer employees can file the Employer Annual Return (forms P14 and P35) online automatically from the CD-Rom. (If you have more than nine employees you can use the calculator figures to file your return online using 'Online Return and Forms - PAYE' service or to complete your paper return.)
Read about using the P11 Calculator
Understanding and using PAYE Online for employers
Benefits of using payroll software
There are a number of benefits of using payroll software or HMRC's P11 Calculator, including:
- saves time and error - the pay, tax and NI are calculated automatically
- avoids the need to use tax tables
- the software links through to online filing, helping you to meet the requirement described below for all employers from 2010
If you have 50 or more employees you must file your Employer Annual Return (forms P14 and P35) online now. If you have fewer than 50 employers, you do not have to file online until as least 2010 but you can get a tax-free payment for filing online before then. There are separate deadlines for sending forms P45/P46 online.
Read our related guidance for the detail, including how to claim your tax-free payment if you have fewer than 50 employees and file your return online early.
Employer deadlines for filing PAYE online
More about the benefits of online filing
Completing form P11 using paper methods
If using paper methods, you can download the paper form P11 below, print it from the Employer CD-Rom or order it from the Employer Orderline on Tel 08457 646 646.
There are two ways that you can calculate the figures you'll need:
- use our free PAYE, NIC and Statutory Payment Calculators on our website and the Employer CD-Rom - and the Collection of Student Loans Calculator on the CD-Rom
- work out the figures manually using the tables that you can download from our website
If you keep paper P11s you can still file your returns online and qualify for the tax-free payment available to small employers who file electronically ahead of time - read our guide on completing the paper form P11 to find out more.
Find out about completing the paper form P11
Record keeping if you're not required to complete a form P11
If you're not required to complete a form P11 (see the earlier guidance for when this applies) bear in mind that you still need to keep a record of your employee's name and address and the amount of wages paid in each pay period.
What about taxable expenses and benefits?
If you provide your employees with taxable benefits and expenses you'll need to complete separate forms and keep separate records of these - most of this paperwork is completed at the end of the tax year, but you need to tell us about company car benefits during the tax year. Read the detail in the section 'Dealing with expenses and benefits'.
Dealing with expenses and benefits
More useful links
Finalising form P11 at the end of the tax year
Completing the Employer Annual Return: P14s and P35
