P11D for Directors

LouiseR Registered Posts: 59 Regular contributor ⭐
I have a company who pays out medical insurance for it's 4 directors who all earn a zero salary. Do I need to complete P11D's?

Two of the directors have 50% shares. They all work elsewhere full time.

Also just to confuse things they recharge the cost 50/50 to two related Ltd companies (where they work full time). Should the other two Ltd companies do the P11D's? They earn a salary from these two.

I'm pulling my hair out trying to get my head around it. Any help would be much appreciated.

Many thanks



  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    I would argue that Company A pays for the benefit, but it is paid back in full by the director, so no BIK charge. It is paid back by the directors via their other company, and in the books of that company should be a debit to their directors loan account if they are directors (or the other company can declare it a BIK)
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
    I would go with Monsoon's idea. Firstly, the fact they have no pay from company A is irrelevant, if there are BIK's of any kind there is a P11D for a director.

    The key is tracing the cost to the company and seeing where the cost finally rests. With company A the entry in the P11D is cost to the company less amount made good, which is the same, leaving a nil value to report.

    With company B it is cost to the company, i.e. the amount they paid to company A, again less amount made good which is the same value if the amount is written off against DLA or nil if the cost is physically incurred, leaving either nil or the full value of the benefit, or somewhere in between.

    Technically speaking both company's should complete P11D's showing the trail but generally HMRC accepts that if the whole P11D becomes nil then its not needed.

  • LouiseR
    LouiseR Registered Posts: 59 Regular contributor ⭐
    Great thanks, that makes perfect sense now.
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