As an employer you’re required to keep records of pay, tax and National Insurance contributions. For each employee that you make a payment to during the tax year, you have to prepare and maintain a form P11 or equivalent payroll record (either electronic or paper) 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 (some of which is free) or HM Revenue & Customs’ (HMRC’s) free P11 Calculator – which is part of the Basic PAYE Tools package. These do most or all of the calculations you need automatically. They will also make it easier and quicker for you to file your starter and leaver information (forms P45 and P46) and your Employer Annual Return (forms P35 and P14) online, which is a requirement for almost all employers.
Alternatively, you can use a paper version of form P11 but this is more time consuming and less convenient when it comes to filing online.
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Table of Contents
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)
Completing form P11 using paper methods
Record keeping if you are not required to complete a form P11
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