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Is P11D compulsory?

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    Is P11D compulsory?

    I never have anything to put on the P11D (I think?). Any company expenses that I pay personally in the course of my contracts are reimbursed to me at cost - with reciepts.

    Do I not HAVE to complete a P11D in this case? I don't get any personal benefit from the reimbusrement - its just the company paying me back for things I purchased on its behalf (ie no taxable benefits included).

    Thanks.

    #2
    as far as i know, anything that is bought personally and reimbursed by the company needs to go on a P11d return.

    if that expense was a legitimate business expense, then you will need to make a section 198 claim, so that you are not taxed on it.

    if you have no expenses reimbursed, and no benefits in kind, then you will still need to return a nil P11d(b) form.

    Comment


      #3
      Not an accountant, but my understanding is….
      Yes it is necessary unless your company has a dispensation not to (which is rare for a small company). You put the expense payments on the P11D, then when you fill in your personal tax return you enter them again, and also put the same figure in the “expenses incurred doing your job” section, which cancels them out leading to no taxable benefit.

      Comment


        #4
        I have a travel dispensation and all expenses are paid for via company credit card and have been lead to believe this obviates the need for P11D.

        Haven't returned one since having the dispensation and getting the credit card. Thought the P11D system was a way of cover payments into personal accounts.

        Comment


          #5
          It does. If the company pays for something using it's credit card then that has nothing to do with the employee, so it doesn't appear on his P11D.

          Comment


            #6
            Re:P11Ds

            From the 480 Booklet:

            Purchases on employer’s behalf
            Businesses are often run in such a way that employees make payments on their employer’s behalf. For example an employee may buy stamps, stationary and items of equipment for the employer and be reimbursed the costs incurred from petty cash or by cheque. Such transactions are not providing the employee with either earnings or expenses because the employee has received no money of his own. Accordingly such reimbursements need not feature on the P11D.

            Comment


              #7
              Re: Re:P11Ds

              I had lengthy discussions with my accountant and the Inland Revenue over this one and unfortunately you are obliged to fill out a P11D, even if you then negate it's effects by offsetting the figures on your self assessment return. The Revenue will deem figures that are not offset as a benefit in kind and the resulting tax liability would normally be recouped by lowering your personal tax free allowance threshold in the next tax year.

              In my case the P11D was filled out and returned and I subsequently got a form from the Revenue proposing to lower my tax allowance to make up for the benefit in kind. To offset the benefit in kind claim from the Revenue I needed to fill out expenses boxes on my self assessment form and note the expenses as claimed wholly and necessarily for the benefit of the business. I cannot remember the offsetting boxes on the SA form but if anyone is interested I can look them up on the copy of last years form and post them on here.

              Comment


                #8
                Online

                If I recall correctly I tried to fill in a P11D online last year. Everything was zero - it was a null return - and as a result it was rejected by the IR system. Conclusion - if there's nothing to be entered on the P11D, they don't want it. So I submitted the year-end PAYE forms without the P11D and they didn't object.

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