P11D help please

Rachel Registered Posts: 348 Dedicated contributor 🦉

I have a director who has claimed work clothes in expenses.

I believe I need to put these on the P11D along with travel, meals and entertaining. Firstly, am I correct?

Also for the Corporation tax return they are not allowable so I should add them back.

So as he is the only Director is it more tax efficent if he buys these personally so have I completely missed the point on a Sunday afternoon?

Any help greatly appreciated.


  • Rachel
    Rachel Registered Posts: 348 Dedicated contributor 🦉
    It is a bik so they do need to be included on P11D & Self assessment but do they also have to be excluded from the calculation for corporation tax?

    Sorry if it is a simple question just getting muddled and panicking about a 3 day deadline when I only go info Friday!
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    Does Hillyer v Leeke help?

    Your case will be specific and the question of "ordinary work clothes" must be addressed chapter 7

    If your director has bought some clothes to wear, these would normally be bought using "after tax income" by employees. In this case the company cannot include the cost in the calculation of tax, and personal income tax calculated so that the cost of the clothes should be treated as the net payment to the director.

    This is obviously not the case for working uniforms etc, chefs jackets are workwear so they are costs of the business along with the food, cutlery and anything else they buy.
  • Rachel
    Rachel Registered Posts: 348 Dedicated contributor 🦉
    Thank you most useful
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