In this section enter any personal bills that you have paid on behalf of your employee. Although the taxable value is reported here, employer’s also have to account for the Class 1 NIC liability through the payroll at the time the payment was made. This is because the employer has settled the employee’s pecuniary liability (i.e. paid a bill that has the employee’s name on it).
This P11D section is also used to report certain anti-avoidance rules e.g. where the employer attempts to pay the employee in readily convertible assets.