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How to Complete the “Employment” Section

How to Complete the “Employment” Section. You should fill in the Employment page if you were employed, either full-time, part-time or casual basis. You also need to fill it out if you received income as a Company Director or held an office. Fill out a separate employment section for each job, directorship or office you hold.

You need to enter details of your employment in this section. You also may be able to claim for some types of expenses you may have paid for as part of your job but not been reimbursed for by your employer.

If you had more than one job or left a job and started a new one, you’ll need to complete this section for each employer you worked for during the tax year.

Do not combine your earnings for multiple employments.

Enter Income

The first thing you’ll need to do is let HMRC about how much you have earned before any tax was deducted.

What You’ll Need:

– P45
– P60
– P11d

Employers Name

Enter your employers legal name. You’ll find it on a payslip, in box 13 on a P45 or the bottom right hand corner of a P60.

Employers PAYE Reference

Enter your employers PAYE reference, to help HMRC identify who you work for. It is a 10 digit code separated by a forward slash, for example, 123/AB45678.

You can find it in box 1 on a P45 or the bottom right hand corner of a P60.

Pay from Your Employer

Enter the GROSS pay you received from your employer (that’s the amount you are paid before tax and national insurance is deducted).

Tax Taken Off by Employer

Enter the amount of tax deducted by your employer on your behalf (do not include national insurance).

The areas highlighted in yellow below show where you can find your gross pay and tax deducted on your P45 or P60.

Tips and other payments not on your P60

If you were paid any tips or other payments that were not included in your P60, then enter the amount of these here.

If you didn’t receive any tips or additional payments leave the box blank.

Were you a Director of this Company?

If you were the director of the Company that you are disclosing your pay for then choose “yes”, otherwise choose “no”.

If you choose “yes” you’ll need to confirm whether the company was a Close Company.

A Close Company is defined as a Limited Company that has 5 or less participators or where all the participators are also directors.

For most small limited companies, participator means shareholder.  But it can also apply if a Company has certain types of borrowing or creditors like debentures.

So if you are the sole Director and shareholder of your Limited Company, then you need to choose “yes”.

The rules around Close Companies can be complicated, so always consult a professional if you are unsure how to answer this question.

Benefits from Your Employment

If your Employer provided you with benefits, then you need to choose “yes”, if not choose “no”.

Benefits are often taxable and count as income. They are things like:

  • Company cars;
  • Fuel allowance;
  • Private medical;
  • Interest-free loans.

If you received benefits during the tax year, your employer will have issued you a P11d detailing the cash value of what you have been provided with.

If you have received benefits but your Employer has included them as part of your payslip then you do not need to include them here. Your employer will have deducted tax on your benefits and the figures you need to include on your tax return will be included in your P45 or P60.

If you are unsure whether or not you have paid tax on your benefits then contact your employer.

Employment Expenses

If you paid for certain business expenses as part of your job but were not reimbursed for them by your employer, then you may be able to claim tax relief on what you have paid.

Expenses you can claim against your taxes includes:

  • business travel including incidental meals, accommodation and mileage for using your own vehicle for work reasons;
  • flat rate deductions for expenses that cover the costs of maintaining or replacing tools, uniforms or special work clothes;
  • professional fees and subscriptions;
  • capital allowances for buying large items of equipment necessary to do your job (but not cars or vans).

To claim for any employment expenses or capital allowances for equipment used in your employment, please make sure you select ‘Yes’ from the drop-down menu otherwise, select ‘No’.

You can only deduct the costs you had to pay out in doing your job that meet the HMRC criteria. You cannot claim for personal expenses.

Once you have completed this page, press the green button to “Save and Continue”.

Enter Benefits from Your Employment

If you received benefits from your employer and ticked “yes” when asked on the previous page, you’ll be presented with the employment benefits section.

You’ll need to pay tax on any taxable benefits you have received. Your employer is responsible for working out the cash value of any benefits you have been given and share these values with you on a P11d.

You’ll need your P11d to complete the next section of your tax return. Here’s what a P11d 2018/2019 looks like.

Your P11d for the tax year 2018/2019 is due by 6 July 2019. If you have not received it by this date, then contact your employer.

Company cars and vans

You’ll find the figures you need in box 9 in Sections F and G.

If you had both a car and a van, you’ll need to add the amounts together.

Fuel for company cars and vans

You’ll find the information you need in box 10 or Sections F and G.

Again, if you received fuel for both a car and a van, you’ll need to add the amounts together.

Private medical and dental insurance

Transfer the figure from Section I on your P11D in box 11.

Vouchers, credit cards and excess mileage allowance

Vouchers are taxable as though you were paid in cash. So if your employer gave you a voucher you’ll need to include the figure from Section C on your P11d.

Vouchers are things like:

  • Gift vouchers;
  • Childcare vouchers over the set amount;
  • Season tickets provided or reimbursed.

Mileage Allowance Payments are included in Section E of your P11d. This figure will relate to any excess mileage paid to you above the approved Mileage Rates set by HMRC.

The mileage rates for 2018/2019 are:

 First 10,000 MilesOver 10,000 Miles
Cars and vans45p25p
Motor cycles24p24p
Bicycles20p20p

So if your employer has paid you a rate per mile over the set amounts you will expect to see a figure here.

If you received mileage allowance payments and vouchers, you’ll need to add the figures in section C and E together.

Goods and other assets provided by your employer

This figure is usually the market value of any goods your employer has given you, like a laptop or mobile phone.

You’ll find the cash value in sections A and L on your P11d, so you’ll need to add them up (if necessary) and transfer this figure onto your tax return.

Accommodation provided by your employer

Enter the figure from section D on your P11D.

Other benefits (including interest-free and low-interest loans)

This is where you need to include most of the remaining benefits you have received.

Add together all the box 15 amounts on your P11D and put the total figure into this box.

Expenses payments received and balancing charges

Add together all the amounts included in each box 16 within section N on your P11D and enter that figure here.

Claiming for Employment Expenses

If you paid for business expenses that were not reimbursed by your Employer, then you may be able to claim for them here against your taxes.

It is your responsibility to make sure you are legally allowed to claim tax relief on the expenses you have incurred and that you only claim for the exact amount you have paid.

Business Travel and Subsistence Expenses

If you have paid for business travel and incidental costs you can claim this here.

Generally you can claim the cost of:

  • Travel but not your normal commute;
  • Related food costs, keep your claim reasonable;
  • Accommodation;
  • Mileage allowance to cover the cost of using your own car, motorcycle or bike (make sure you use the set rates below and keep a record of how you reached your claim);
  • Additional mileage if your employer pays you less than the HMRC set rates below;
  • Other expenses like using your phone calls.
 First 10,000 MilesOver 10,000 Miles
Cars and vans45p25p
Motor cycles24p24p
Bicycles20p20p

You’ll need to add up the amounts you have spent in respect of travel and subsistence, then include them in the first box.

Fixed Deductions for Expenses

HMRC allows you to claim tax relief if you are responsible for paying for cleaning, maintaining or replacing:

  • Specialist work clothes, like nurses uniforms, hard hats and safety boots;
  • Occupational uniforms if you are an NHS worker for example or a member of the police force;
  • Small tools like an electric drill.

You can only claim for the cost of replacing an item, not the initial cost of buying it.

You can either claim:

Professional fees and subscriptions

You can claim tax relief on professional fees and subscriptions for approved professional organisations only.

Check if your professional fees or subscription meets the criteria for HMRC approval here.

If you choose to claim for expenses in this section, then you should be aware that HMRC may adjust your PAYE code.

Other expenses and capital allowances

You can include in this box any amounts you have paid for buying small items of equipment that you need to do your job, but your employer did not provide for you. So that’s things like electric drills or a mouse for your laptop.

You can claim for more expensive items, like a laptop, but you’ll need to claim tax relief using capital allowances. You cannot claim for cars or vans in this way.

Claiming expenses is strictly reviewed by HMRC and it is common to find mistakes on claims.

So if you are planning to claim tax relief on expenses make sure everything you have paid for is truly eligible, you have receipts where necessary and you do not claim for anything your employer has reimbursed you for.

Once you have completed this page, press the green button to “Save and Continue”.

Complete the Employment Section

Once you have completed this section of your tax return, click “Save and Continue” where you’ll be taken to a page requesting additional information.

If you need to add anything for HMRC, then do so now. If not, click “Save and Continue”.

Head back to the Fill in Your Tax Return summary page and check that the crosses have changed from crosses to ticks.

Disclaimer
While I have made every attempt to ensure the accuracy of the contents of the “Straightforward Guide To Completing Your Self-Assessment Tax Return”, I cannot accept responsibility for any losses or penalties you may incur while following the contents. I have prepared the contents for a wider audience so you may need to seek additional assistance relevant to your own personal situation.

Anita Forrest
About Anita Forrest

Anita is a Chartered Accountant with over a decade of working with small business owners. She is the creator of the ‘Go Self Employed’ website, where she simplifies complicated self-employment topics such as taxes, bookkeeping, banking and insurance.