Preparing for year end

truecockney

This seems like a silly question, but as this year is the first time I'm having to prepare P11d's, I wonder if someone else can confirm something for me.

Working for a recruitment agency, we have temporary workers paid through PAYE. The only expenses we pay to them are for reimbursing costs incurred in the duty of their role with our client (only after payment has been received from our client).

The question I have is, as we are only middle-men (and do not give them any benefits-in-kind), are we required to complete a P11d for all temporary workers that satisfy the criteria (earning over £8,500 in the tax year, etc) as well as our employees? This was done last year, however thinking it through, as they are getting reimbursed fully (and not more) and the expenses are not going through our accounts (apart from matching a "sale" with an "expense" through a recharge), would there not be any NI (Class 1A) nor tax implications? (The only charge I can think of that would be relevant is the mileage allowance, however nobody gets anywhere near 10,000 miles business travel in their own car.)

Nilesh Mandvia

On payroll?

Are these people on your payroll?

Do you have dispensation from reporting everything on P11D?

Vonni

If you are only reimbursing actual expenses for which a receipt has been provided then there is no tax or NI implication BUT you should have put a dispensation in place from the outset to cover these payments.

A dispensation cannot be applied retrospectively so you may find that you will have to complete P11D's for this year.

V

truecockney

Thanks Vonni,

I'll best have a word then to see if we can. Would've been back sooner to reply, but getting my head around some of the HMRC booklets on P11(d)'s took much longer than expected!

I did read on the AAT Interactive CPD that you can apply for dispensation back to the start of the year, but I doubt there's enough time to do that for 09/10 now.

(Just in case anyone else is in a similar situation)
http://www.aat-interactive.org.uk/cpd/?p=378

deanshepherd

There is time - get it in quick!

They will backdate to the beginning of the year in which an application is received so get it in the post and I am sure it will be given for the current year.

Bluewednesday

There is an online link too which is much quicker:

https://online.hmrc.gov.uk/shortforms/form/P11DX?dept-name=&sub-dept-name=&location=0&origin=http://www.hmrc.gov.

I've applied for all ours this month via this link and got most of them back already and they have been backdated to the beginning of the tax year.

Poodle

Bluewednesday wrote: »

I've applied for all ours this month via this link and got most of them back already and they have been backdated to the beginning of the tax year.

Could I ask what you fill in the box as your position within the company, are you allowed to actually do this as an agent?

Bluewednesday

I am filling it on on behalf of the directors, so they check it and authorise it's submission.

truecockney

Bluewednesday wrote: »

There is an online link too which is much quicker:

https://online.hmrc.gov.uk/shortforms/form/P11DX?dept-name=&sub-dept-name=&location=0&origin=http://www.hmrc.gov.

I've applied for all ours this month via this link and got most of them back already and they have been backdated to the beginning of the tax year.

Thanks Blue! I've heard our Management Accounting is coming in tomorrow so I'll bring it up. It would certainly save a lot of headaches if we could get it in in time for this year!