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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