Join BKN

Join BKN
Join BKN

Ideal Schools

Join BKN

The Book-keepers Forum -> VAT, Payroll & Tax -> P11D Expenses and Benefits
Post Info TOPIC: P11D Expenses and Benefits
Karolle_


Veteran Member

Status: Offline
Posts: 25
Date:
P11D Expenses and Benefits
 

Hi, if director bought safety boots from company bank account for himself to wear in construction sites as the company is construction company how to record on P11D?I looked at A to Z expenses on HMRC website, I would assume that safety boots should be regarded the same as protective clothing using at workplace. But it explains where to record when you give or make available from your assets. But this case is that one item was bought. Would be right to record on section N  as other expense?



__________________

km

 
MarkS


Guru

Status: Offline
Posts: 987
Date:
 

I would say that there is no benefit as the boots are needed to carry out his duties in the visiting of sites.

The amount involved is likely to be immaterial that HMRC wouldnt bother anyway.

Regards

MarkS



__________________

www.stewartaccountingservices.co.uk

Providing bookkeeping, accounting and taxation services to small and medium sized businesses.

Stardoe


Guru

Status: Offline
Posts: 1152
Date:
 

Hi km,

I work for a client that buys quite a bit of protective clothing for himself and his employees due to the nature of their business. The I never included any of this on a P11D as Mark said they are necessary for the performance of his duties on sites, not a benefit in kind.

Pauline

__________________

Pauline
Karolle_


Veteran Member

Status: Offline
Posts: 25
Date:
 

But why HMRC asked me to put hotel expenses for director on P11D that were totally for business purpose?I cannot understand this point, you as a director have to stay in hotel for couple of weeks due to business purpose and later on you have to pay tax as it is regarded as benefit despite the fact that it was totally for business. I contacted HMRC and they asked me to write this on section N of P11D and later on director had to pay tax through self-assessment.

__________________

km

 
Stardoe


Guru

Status: Offline
Posts: 1152
Date:
 

If the director earns more than £8,500 a year then you are obliged to report this on a P11D, but if the costs were purely for business purposes then there will be no tax or NI to pay. It may have been that the costs reimbursed were more than he actually paid? (In which case it would be counted as earnings and should have been added to PAYE)

Pauline

__________________

Pauline
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 6552
Date:
 

Hi pauline,

just a quick addendum to your post. There's no lower limit for directors, the £8,500 only applies to employee's.

kind regards,

Shaun.



__________________

Answers given are for outline only and formal advice should be sought from a suitably qualified Accountant.

BKN Book-keeper of the year 2012
Stardoe


Guru

Status: Offline
Posts: 1152
Date:
 

Oops...sorry Shaun. Think more...type less :)

On this page:- http://www.hmrc.gov.uk/paye/exb/overview/forms.htm#3 it says that you "use P11d for almost all directors, but must use P9d if all the following factors apply" point number 1 is "they earn at a rate of less than £8,500 a year". Is this the only time this applies then?

Pauline

__________________

Pauline
Donna CBK


Senior Member

Status: Offline
Posts: 366
Date:
 

apply for P11DX Dispensations- saves a lot of hassle

__________________

 

Donna - Complete Book-Keeping Ltd & CBK Training

Sage 50 One Day Workshop  - West Drayton (Near Heathrow)

Online Sage and microsoft training

www.completebookkeeping.co.uk
Karolle_


Veteran Member

Status: Offline
Posts: 25
Date:
 

I am sorry, I am new to this, but looking at HMRC website a to z expenses - travel general expense. It says that for business travel you reimburse - by reimbursing no more than the necessary costs of business travel (includes accommodation), you as an emnployer have to report it on form P11D in section K, B or N (unless you have dispensation but employer does not have), you have no tax or Nic to pay as an employer. It was the same said to me by calling HMRC helpline and when it was recorded director had to pay tax on this benefit through self-assessment. It looks unfair that director has to pay tax personally for things that were totally for business purpose. This is what I wanted to highlight.



__________________

km

 
MarkS


Guru

Status: Offline
Posts: 987
Date:
 

My understanding is that it has to go on the P11d as a benefit in kind but you can claim relief under what i think used to be s191 (may now have changed) as was incurred wholly, exclusively and necessarily in the course of the business and therefore the individual doesnt suffer any personal tax liability.

Maybe someone eles can confirm on disagree as been a number of years since did a P11d.

Regards

MarkS



__________________

www.stewartaccountingservices.co.uk

Providing bookkeeping, accounting and taxation services to small and medium sized businesses.
Kishan


Veteran Member

Status: Offline
Posts: 29
Date:
 

Hi All,

Sorry to start this thread up again but I had a question that I just needed some clarification on.

If a client has received confirmation that they have a P11D Dispensation, can they just reimburse themselves for expenses they pay for or is there another procedure they need to be aware of or following?

regards,

Kishan

__________________
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 6552
Date:
 

Think of a dispensation in the same ways as the mileage allowance.

A record still needs to be kept of everything to back up that only legitimate expenses covered by the dispensation were paid.

That aside currently dispensations are simply omitted from reporting on the P11D.

Not sure yet about the reporting requirements of dispensations once RTI has been implemented... Or for that matter the whole concept of a P11D post April this year (something else I need to read up on!).

kind regards,

Shaun.

__________________

Answers given are for outline only and formal advice should be sought from a suitably qualified Accountant.

BKN Book-keeper of the year 2012
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum -> VAT, Payroll & Tax -> P11D Expenses and Benefits
Post to Facebook Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

BKN Special Offers

 

Resources

Careers & Qualifications  Start Up Essentials  Marketing Centre   Software Reviews
What is a book-keeper  Register as Self-Employed Networking  Software Blog
 Home Study Courses  Money Laundering Local Accountants  
 Qualifications/ Associations  Data Protection Direct Marketing  
 Franchises  Registering as an agent  Telemarketing  
 College / Night School  PI Insurance  Directories  
 Recruitment  Stationery  Google  
     Twitter  
     Volunteer Work  

 

 

 

 

  		 

  		   

 

Copy Right Bookcert Limited