A form P11D should be completed by employers when employees
or directors are in receipt of shares, or share options are
exercised and there is income tax liability.
As the valuation of share related benefits is not always able
to be completed quickly there is no statutory obligation on
employers to value the benefit that the employee receives. An
estimate of the value may be needed in order to operate PAYE, but
that is not a value which is necessarily correct for assessment
(SA) purposes.
In addition employers have comprehensive responsibilities to
return details of share related benefits. See SSM9.3. Employers
will usually provide a valuation of shares, which the employee will
usually accept. The employee may however if he wishes provide his
own valuation, which would then need to be checked with Shares
Valuation Division. SSM7.1.
The employer therefore does not have to enter a value of
share related benefits on the P11D, but instead completes Box N
with a tick if there are such benefits in the year.
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