P11D Avoidance Question P11D Avoidance Question
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  1. #1

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    Default P11D Avoidance Question

    I've read the threads but am not entirely clear whether I should still complete the P11D (I've stated not applicable on my returns at the moment) - I'm director of Ltd & started a payroll at the end of March 12 with 1 payment under the 8.5K limit & tax/NI limits.

    I'm at a temporary workplace (under 24 months) and all expenses are paid directly by the company these include;

    Accommodation (hotels / flat lease / bills)
    Company car / petrol
    Business Lunch/s etc

    I'm not actually claiming anything back from the company & everything is for business use only - do I still need to complete the P11D?

  2. #2

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    Edit: Just saw you have a company car. Of course you have to fill one in then as how else would they know you have it and tax you accordingly.

    ------

    Yes. For example this year I have spent £1000 on hotels for business trips.

    Even through the company card was used to pay for it I have declared £1000 on my P11d. Doesn't generate any other tax due.

    Then fire off a letter like this to the tax inspector (I suppose you're meant to but last year I forgot and it didn't seems to do any harm!).

    I hereby claim relief under the provisions of Section 336 ITEPA 2003 et seq against my income from the above organisation. A claim is made in respect of the following items included upon form P11D for the year to 5 April 2011.

    Travelling and Subsistence payments £1,000.00
    As a director I think you have to complete a P11D anyway even if you just send in an empty one. The question is why would you not want to fill one in?
    Last edited by Sockpuppet; 21st June 2012 at 16:52.

  3. #3

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    I only use the company car for business miles - so there's no tax due.

    Just thought I may not have to as nothing is reclaimed and its all only for business & the accommodation is under the relocation limit.

    Just seems a bit pointless - it will all be covered in the company accounts - just duplication - I guess I will have to do then - so I guess I only have to complete for March as that was the only month I was on payroll.

    It does give you the option of not applicable on the HMRC website?


    Quote Originally Posted by Sockpuppet View Post
    Edit: Just saw you have a company car. Of course you have to fill one in then as how else would they know you have it and tax you accordingly.

    ------

    Yes. For example this year I have spent £1000 on hotels for business trips.

    Even through the company card was used to pay for it I have declared £1000 on my P11d. Doesn't generate any other tax due.

    Then fire off a letter like this to the tax inspector (I suppose you're meant to but last year I forgot and it didn't seems to do any harm!).



    As a director I think you have to complete a P11D anyway even if you just send in an empty one. The question is why would you not want to fill one in?

  4. #4

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    Quote Originally Posted by Podgy View Post
    I only use the company car for business miles - so there's no tax due.
    Guess again

    If its available for your use regardless of if you use it or not your still taxed on it. Do a search this has been covered recently.

    Next you'll be telling us you reclaimed the VAT on it!

  5. #5

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    Quote Originally Posted by Podgy View Post
    I only use the company car for business miles - so there's no tax due.

    Just thought I may not have to as nothing is reclaimed and its all only for business & the accommodation is under the relocation limit.

    Just seems a bit pointless - it will all be covered in the company accounts - just duplication - I guess I will have to do then - so I guess I only have to complete for March as that was the only month I was on payroll.

    It does give you the option of not applicable on the HMRC website?
    Sounds to me someone needs an accountant. If you are so far off the mark with a company car it sounds like he is going to possible not only save you money but get your ass out of the trouble it sounds like it could be in. £1200 is cheap for peace of mind.
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  6. #6

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    You can apply to hmrc for a P11d dispensation which removes the requirement to submit a p11d in many cases. It doesn't cover all reportable expenses (company car use is not covered for example, although fuel for it is) but does mean that your average contractor can avoid having to complete a p11d if their expenses don't start getting outlandish.

    Details here
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  7. #7

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    Quote Originally Posted by Podgy View Post
    I've read the threads but am not entirely clear whether I should still complete the P11D (I've stated not applicable on my returns at the moment) - I'm director of Ltd & started a payroll at the end of March 12 with 1 payment under the 8.5K limit & tax/NI limits.

    I'm at a temporary workplace (under 24 months) and all expenses are paid directly by the company these include;

    Accommodation (hotels / flat lease / bills)
    Company car / petrol
    Business Lunch/s etc

    I'm not actually claiming anything back from the company & everything is for business use only - do I still need to complete the P11D?
    Is this another example of a newbie trying to save cash by not engaging an accountant? Stop being such a dick and get an accountant fast.

    You will need to do a p11d and it is due by the start of July - my accountant has done mine

  8. #8

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    Please, please get a good accountant - people use them for a reason and you are going to get yourself into a right pickle with your current reasoning
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  9. #9

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    Thanks for the responses - I can do the P11D.

    Take a rain check on engaging an accountant tho!

  10. #10

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    Quote Originally Posted by Podgy View Post
    Thanks for the responses - I can do the P11D.

    Take a rain check on engaging an accountant tho!
    That is probably wise, you won't like what he says about the car amongst other things. Better to stay in the dark and at risk than do the right thing. Right on brother...
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