P11D car service

HI would like more info about P11D relating private car use.
We have 2 directors, one puts fuel receipts in, and other instead of writing fuel off, has paid for service and road tax through company in February. They have heard that it can done that way without any affect on tax or P11D. But I can not find anything about expenses on private cars.
Would those be benefit in kind as personal bills in P11D.



  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    edited June 2016
    This is how I would deal with motor expenses for use of own car:
    1. Put all private expenses through their director's loan account
    2. Ask them to keep a mileage log of business (not commuting) and submit a claim to the company.

    If the directors insist that the company should pay for these costs it is indeed a benefit in kind. If the expense is incurred directly by the company, the amount should go through payroll and class 1 NIC deducted (but not PAYE), and the amount should go on the P11D.
    If the expense is incurred by the director and then reimbursed by the company the amount is subject to class 1 NIC and PAYE through payroll.

    A claim for business mileage can be made through the taxpayer's SA return.

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