To P11D or not to P11D To P11D or not to P11D
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  1. #1

    Nervous Newbie


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    May 2016
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    Default To P11D or not to P11D

    I'm new to the forum so please forgive my naive question!

    I am a Limited Company contractor paying myself £8060 salary per year and the rest in dividends.
    My Limited Company also provides contributions to my personal pension plan of £6000 per year and also provides for training courses, subsistence and professional subscriptions, all necessary for me to fulfil engaged contracts.

    My question is - Do I need to complete a P11D submission.?

  2. #2

    Super poster


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    Default

    Assuming the training is work-related (I won't go into the ins and outs of that here - do a search as its been discussed many times) then there is no tax/NI and it doesn't need to be reported on a P11D.

    If the professional subscription is on HMRC's approved list then there's no reporting requirements:
    https://www.gov.uk/expenses-benefits...s/whats-exempt

    If they aren't on the list but its wholly and exclusively for business purposes and the subscription is in the company name (e.g. IPSE subscriptions) then my understanding is its not tax-deductible for corporation tax purposes but doesn't incur a BIK either. I've certainly never bothered reporting my IPSE membership on a P11D. I'm not certain about this - what's the subscription?

    Finally, travel and subsistence used to be one of the main things (along with business calls) the average contractor would need to report on a P11D unless they had a dispensation. From this tax year dispensations have been replaced by "exemptions". So long as you're either expensing your actual costs, or paying HMRC approved benchmark rates and the travel (and related subsistence) relates to either business journeys or travel to a temporary work place then you no longer need to report these on a P11D.

    https://www.gov.uk/employer-reportin.../dispensations

    If you have nothing to report on a P11D you do not need to file one.

  3. #3

    My post count is Majestic

    northernladuk's Avatar
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    You've got an accountant??
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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