Just payroll your benefits through the software and remove the need to ever buy Sage 50 P11D again.

Just payroll your benefits through the software and remove the need to ever buy Sage 50 P11D again.

Would that it t'were so simple....

A quick look at the Sage knowledgebase suggests Sage 50 Payroll doesn't want to be that helpful in making the change (which I suppose I can understand as they make money from selling a separate package to do it!).

Did you use a different package or do I need to dig deeper into the documentation....?

Using Sage 50 Payroll

• Register with HMRC at gov.uk before 5 April 2025 for the tax year 2025/2026
• Once the tax year starts you have to payroll the benefits for the whole of the tax year, or until you stop providing them
• You need to work out the Class 1A National Insurance contributions on benefits and manually complete form P11D(b)
• If you make a mistake, roll back or restore your data
• Calculate the P11D values or cash equivalent manually, then manually enter the figures into Sage 50 Payroll

Hi Mark. Sage Payroll deals well with payrolling of benefits and various guidance online will help you set up the benefits in minutes. You have to apply/register with HMRC to payroll benefits and you have to be set up and ready for 6th April 2026. I believe the payrolling of benefits was becoming mandatory this year hence why we moved over to doing this last year. I think it may have now been deferred for a year but will become mandatory in APril 2027 so you may as well make the move now and save the subscription fee.

Hello Matthew, I have payrolled the benefits for the last tax year 2025/26 but now when it is time to pay the Class 1 NIC over to HMRC , Sage does not have a report or any way to calculate the NIC.. We only have Car and Medical benefit ..  I have called Sage helpline and all they have done is apologised and said I need to calculate it manually!!!! as Sage cannot calculate NIC's for Benefits only.  Do you have any suggestions on how to go about this?  Thank you Misty 

If you have payrolled the benefit you can run a report for the pay elements that form the benefits for the relevant tax year. This will give you a total of all payrolled benefits and then you simply multiply that value by 15% to arrive at the Class 1 NIC liability to pay to HMRC. You will have to login to PAYE for Employers via the Gateway to submit the P11D(b) statement (not P11Ds) which will update HMRC on the liability due. You then need to make payment which you can do via the Gateway (i believe there is a PAY NOW button) or via online banking where you will set them up using the Bank details per the PAYE for Employers page. I hope this is of help.

Thank you so much Matthew. I will do this now. 

Kind Regards

Misty