Last month we reported that forms P11D which
report details of employees’ benefits
in kind and expenses have to be with HMRC by
6 July. Some of you will no doubt be trying
to collate the necessary information to prepare
these forms which is a time consuming process.
Employers who obtain a dispensation from
HMRC only generally need to report taxable
benefits without having to report details
of expense payments. These expense payments
such as payments for travel (taxis, train
fares and parking) and subsistence costs
(hotel bills and meals) which would normally
not result in a taxable benefit as they are ‘incurred
in the performance of the duties of employment’.
Unfortunately the tax rules state that these
payments have to be reported by the employer
on forms P11D and then claimed as tax deductible
personally by the employee.
HMRC have issued a new form to enable employers’ to
apply for a dispensation which is far more
detailed than the previous version. A dispensation
should only be applied for where your expenses
procedures would stand up to close scrutiny
and we can help to check if this is the case.
If you already have a dispensation it may
be time to review it to check it still accurately
reflects your businesses procedures.
Internet Link:
HMRC guidance and form P11DX
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